Bitcoin surges to highest level since May as US policy fuels crypto rally

Bitcoin reached its highest level since May, hovering around $77,500, as US policy initiatives fueled a crypto rally. The digital currency surged by approximately 9.5% and made its way past the 200-day moving average for the first time since December 2025. This milestone, following an all-time high over $126,000, suggests the end of a prolonged downward trend.

The rally was triggered by the US Treasury Secretary's announcement to double the size of its long-dated bond buybacks, prompting traders to exit billions in short positions. President Donald Trump's meeting with crypto industry leaders, including shareholders of Coinbase Global, further bolstered optimism. The administration expressed support for a cryptocurrency-friendly approach, with Trump pushing for the Senate to pass the Clarity Act, a bill aimed at providing regulatory clarity for the digital assets market.

Institutional demand for Bitcoin intensified this week, with 13 Bitcoin ETFs posting their highest inflows in six weeks, with over $1 billion flowing into the funds. Analysts have differing views on Bitcoin's future, with some anticipating a decline toward $50,000, while others remain bullish on the digital asset. Gold also hit its highest level since May, driven by concerns about potential dollar weakness due to bond market intervention.

Financial experts recommend maintaining a balanced portfolio with overweight bonds and small allocations to Bitcoin and gold to manage risk and maximize returns.