Crypto shares climb after Trump advocates for Clarity Act

On August 20, cryptocurrency-related stocks experienced a surge after the U.S. Treasury Department announced its support for longer-duration bonds, leading to a rise in risk assets. This move came after a significant bond selloff caused the 30-year Treasury yield to reach its highest level since 2007. Higher yields generally negatively impact risk assets, such as cryptocurrencies, as they raise the returns on safer investments.

Despite the Treasury's intervention being relatively small and short-lived, it offered a positive signal for the crypto market, according to analysts. The rally in crypto was further fueled by a wave of short-covering following weeks of narrow trading. Bitcoin's price rose by 3.48% to $71,505, crossing the $70,000 mark for the first time since June.

Other major cryptocurrencies, such as Ether, gained 2.46%, while Coinbase Global's stock increased by 6.05%. Bitcoin mining machine maker Canaan surged 10.37%, and stablecoin issuer Circle rose by 3.8%. Robinhood advanced by 0.42%. The rally was driven by U.S. President Donald Trump's support for the Clarity Act, a legislation aimed at establishing clear rules for digital assets.