Bitcoin, Ethereum, and a broad range of other cryptocurrencies have surged in value following President Donald Trump's call for Congress to pass the Digital Asset Market Clarity Act, a piece of legislation widely viewed as a boon for the crypto industry.
In addition to advocating for the bill, Trump also signaled potential regulatory actions against Hyperliquid. This decentralized exchange has gained significant traction among traders due to its perpetual contracts trading services. According to data from CoinGecko, Hyperliquid's native token has climbed approximately 20% over the past 24 hours.
A pullback in Treasury yields has also contributed to heightened trading activity in the iShares Bitcoin Trust ETF, with trading volumes exceeding 4.5 times the 30-day average even before news related to Hyperliquid emerged. Meanwhile, Bitcoin market volatility has expanded, as the BVIV Bitcoin volatility index from Volmex Labs dipped to an annual low of 35.5 last Friday before climbing back above 43.5.
Charlie Hayward, APAC Director at RootstockCollective, noted that the U.S. Treasury's announcement of a substantial increase in the repurchase of 20-year and 30-year bonds led to a notable drop in yields. This, in turn, has made riskier assets like Bitcoin more attractive to investors.
Max Studerlin, Head of APAC Partnerships at Sygnum, described the Bitcoin rally as a convergence of both macroeconomic and policy-driven catalysts. "The Treasury's decision to double its buyback of long-dated bonds is intended to address concerns over long-term yields," he said. "This comes amid rising borrowing costs fueled by U.S. debt concerns and some crowding-out effects from bond issuance by mega-cap tech firms."
Geoffrey Kendrick, Global Head of Digital Asset Research at Standard Chartered, pointed out that the Treasury's enhanced back-end support is "precisely the kind of positive news Bitcoin thrives on." He added, "Investors should now prepare for Bitcoin to reach $100,000 by the end of 2026."
Thomas Lee, Co-founder and Head of Research at Fundstrat, commented, "The volatile crypto trading sessions over the past few days have triggered the second-largest short squeeze on record." He also noted that this dramatic price movement has pushed Ethereum to a three-month high, with CoinGecko data showing a roughly 19% gain over the past seven days, bringing the asset to $2,251.
David Morrison, Senior Market Analyst at Trade Nation, observed that Bitcoin has been oscillating between the support level near $62,000 and the resistance level at $66,000 over the past six weeks. "Despite Bitcoin being nearly 50% below its all-time high from October last year, the market has remained surprisingly calm, which has been quite frustrating for crypto traders," he remarked.