Cryptocurrency-linked equities climbed on Thursday following a combination of Treasury Department actions and political developments supporting the sector. The U.S. Treasury announced it would double buyback sizes for long-duration debt instruments, a move taken after a significant bond selloff had driven the 30-year Treasury yield to levels unseen since 2007. While analysts noted the intervention offered modest and short-lived relief in the bond market, it conveyed a positive signal for risk assets including cryptocurrencies, which typically benefit when safer investment options become less attractive.
Bitcoin advanced 3.48% to $71,505, reaching its highest point since June and surpassing the $70,000 threshold. The leading cryptocurrency has declined approximately 18% over the course of the year and remains down roughly 43% from its record high in October. Ether gained 2.46% and reached its highest level in over three months, trading at $2,272. Market analysts attributed the rally partly to short-covering activity following an extended period of narrow price ranges.
Supporting sentiment toward digital assets was President Trump’s public endorsement of cryptocurrency legislation during a Wednesday White House event with industry executives. Trump urged Congress to pass a “fair version of the Clarity Act,” legislation that remains stalled in the Senate. The measure would establish whether cryptocurrencies qualify as securities or commodities, determining regulatory jurisdiction between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Crypto-related publicly traded companies showed broad gains. Coinbase Global gained 6.05%, bitcoin-focused Strategy rose 4%, mining equipment manufacturer Canaan surged 10.37%, stablecoin issuer Circle gained 3.8%, and trading platform Robinhood advanced 0.42%. Industry participants have emphasized that legislative clarity is essential, as regulations remain vulnerable to political shifts and legal challenges in the absence of formal statutory framework. However, legislative prospects face obstacles, with numerous Democrats and some Republicans indicating unwillingness to support any bill lacking provisions restricting government officials from profiting personally from crypto ventures.
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