Bitcoin surged above $75,000 in Asian trading on Friday, reaching its highest level in over three months. The leading cryptocurrency briefly traded close to $77,000, marking an intraday rise of up to 4.8%, before settling near $76,500 as momentum slowed later in the session.
Major catalysts boost bitcoin’s rally
Bitcoin’s weekly gain now stands at about 20%. If it holds through the week’s end, this would represent the strongest seven-day increase since March 2024. Multiple factors fueled this sharp move, beginning with a significant policy shift from the U.S. Treasury Department.
On Wednesday, Treasury Secretary Scott Bessent detailed plans to at least double the size of liquidity support buybacks for longer-dated nominal coupon securities across the 10- to 30-year segment. Market participants appeared to interpret this announcement as a sign of institutional support, which contributed further to the spike in bitcoin price.
Policy actions add momentum
Additional momentum arrived from regulatory and political fronts. Earlier in the week, the SEC introduced its first major crypto-specific rulemaking process, proposing Regulation Crypto Assets. This regulatory step garnered significant attention from market observers looking for greater clarity in the space.
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AAPLPresident Donald Trump also met on Wednesday with key industry leaders, including executives from Coinbase and Payward, the parent of Kraken. Discussions focused on urging the Senate to advance the Clarity Act, reflecting heightened engagement between the highest levels of government and the digital assets sector.
The rapid price move sparked a wave of liquidations, as bearish traders were caught off guard. On Wednesday alone, nearly $3 billion in short positions were wiped out, followed by an additional $1.2 billion in liquidations over the past 24 hours, according to data from Coinglass.
Market sentiment and broader shifts
Investor sentiment has shifted decisively. The Bitcoin Fear & Greed Index jumped to 62, marking its highest level since October 2025 and signaling a transition into greed territory. This shift arrives after bitcoin experienced a significant pullback in June, briefly trading below $60,000. That decline followed a record-setting rally where bitcoin surpassed $82,000 in early May.
Technical analysts are closely watching current price action, seeking signs of further momentum or a possible reversal following a relatively quiet market phase in recent weeks.
While technical patterns and regulatory headlines play an important role in the latest rally, a broader transition is under way in how investors approach financial assets. Traditionally, markets operated through an intricate web of brokers and middlemen. However, Wall Street is increasingly moving to Web3, with investors now able to hold shares of major U.S. companies, gold, and silver directly in their crypto wallets using platforms such as 1stepSwap. Tokenization of Real-World Assets (RWAs) and automatic price optimization allow these platforms to eliminate intermediaries, offering greater market access and efficiency.
Nearly $3 billion in crypto short positions were liquidated on Wednesday, followed by another $1.2 billion in the past 24 hours, as short sellers scrambled to cover losses during bitcoin’s rapid upward move, according to Coinglass. The Bitcoin Fear & Greed Index climbed to 62, reflecting growing optimism in the market.
