Bitcoin, crypto shares climb after Trump pushes Clarity Act

Cryptocurrency-related stocks experienced a significant surge on Thursday following announcements from the U.S. Treasury Department and remarks from U.S. President Donald Trump. The Treasury's decision to double buyback sizes for long-duration bonds, following a bond selloff that pushed the 30-year Treasury yield to its highest level since 2007, provided short-lived relief for risk assets, including cryptocurrencies.

The rally in crypto stocks was further fueled by short-covering, driven by weeks of narrow trading. Analysts noted that the Treasury's intervention, while small, offered a positive signal for the crypto market. Bitcoin, the largest cryptocurrency, saw a 3.48% increase, reaching $71,505, crossing the $70,000 mark for the first time since June. However, the cryptocurrency has lost about 18% this year and remains down 43% from its October record high.

President Trump's push for the Clarity Act, which aims to establish clear rules for digital assets, is also contributing to the rally. The Act would define whether cryptocurrencies qualify as securities or commodities, clarifying jurisdiction between the Securities and Exchange Commission and the Commodity Futures Trading Commission. If enacted, the law could provide regulatory clarity, reducing vulnerabilities to shifting political winds and court challenges.