Bitcoin surged past a six-week trading range after President Donald Trump hinted the U.S. government may buy more bitcoin and urged Congress to pass the Clarity Act, a crypto market structure bill now headed for a September vote.
Trump signals openness to more bitcoin
When asked at a White House meeting with crypto executives whether the administration planned to accumulate sizable amounts of bitcoin, Trump said:
“Certainly it’s been talked about. It’s taken a lot of pressure off the dollar. It’s been very, very good for the dollar, and I think if you came in with recommendations, I would certainly listen.”
The president signed an executive order last year establishing a strategic bitcoin reserve using seized coins, but the order does not commit to open-market purchases.
Trump also pushed lawmakers to advance the Clarity Act before September 15, saying:
“Now we need Congress to take the next step by passing the Clarity Act — this landmark structure legislation which will keep us ahead of China and keep us ahead of everyone else.”
Treasury buybacks fuel the rally
The move was amplified by the U.S. Treasury announcing a significant increase in buybacks of 20- and 30-year bonds, sending yields lower and boosting risk assets.
Geoffrey Kendrick, global head of digital assets research at Standard Chartered, called it exactly the kind of catalyst bitcoin responds to:
“Investors should now be positioning for a move to $100,000 by year-end 2026.”
Bitcoin had been stuck between roughly $62,000 and $66,000 for six weeks before the breakout. Trading volume in BlackRock’s IBIT ran more than 4.5 times its 30-day average even before the headlines hit.
Short squeeze adds momentum
Fundstrat co-founder Thomas Lee noted the rally triggered the second-largest short liquidation in crypto history. The violent move pushed bitcoin’s volatility index from a year-to-date low of 35.5 on Friday to above 43.5.
Bitcoin’s price had effectively halved from its all-time high set last October, frustrating traders who endured weeks of sideways action before the breakout.
