- Bitcoin surged above $70,000, reaching its highest since May 31 amid positive market factors
- Lower US bond yields and weaker dollar boosted risk assets, including Bitcoin and Ether
- Trump urged lawmakers to pass the CLARITY Act for clearer crypto regulations in the US
Bitcoin climbed above $70,000 on Thursday, extending its strong recovery as lower US bond yields, renewed institutional demand and optimism over the Trump administration's crypto policies boosted sentiment.
Bitcoin climbed about 4.1% to above $71,900, its highest level since May 31.
The rally followed a broader rise in risk assets after plans to buy back longer-dated US Treasuries pushed yields lower and weakened the dollar.
Ether gained as much as 5.3%, while Solana and XRP also advanced.
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The latest gains also came after US President Donald Trump met senior executives from major crypto companies and urged lawmakers to advance the CLARITY Act, a key piece of legislation aimed at establishing clearer rules for the digital-asset industry.
What Is the CLARITY Act?
The CLARITY Act is a proposed US crypto market-structure law designed to answer two long-standing questions: What type of digital asset is being traded, and which federal regulator should oversee it?
At the centre of the legislation is a clearer distinction between digital commodities and securities.
The bill seeks to give the Commodity Futures Trading Commission (CFTC) primary oversight of digital commodities and their spot markets, while leaving the Securities and Exchange Commission (SEC) with authority over crypto assets and activities that fall under securities laws.
The legislation also proposes rules covering registration, disclosures, custody and segregation of customer assets, record-keeping, market surveillance, conflicts of interest and anti-money-laundering requirements.
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Why Does It Matter for Crypto?
For years, crypto companies have complained that regulatory uncertainty in the US has made it difficult to determine which rules apply to their businesses.
Supporters of the CLARITY Act argue that clearer boundaries between the SEC and CFTC could replace what the industry calls “regulation by enforcement” with a more predictable framework.
That could encourage investment, support innovation and make the US a more attractive destination for crypto businesses.
The bill, however, has stalled in the Senate over disagreements surrounding ethics provisions and did not reach a vote before the August recess.
Trump has called on senators to pass it, with the legislation expected to return to the agenda when lawmakers reconvene in September.
Why Is Bitcoin Rising Now?
The renewed optimism around the CLARITY Act has coincided with strong institutional demand.
US-listed spot Bitcoin ETFs recorded more than $1 billion in net inflows this week through Wednesday, while large Bitcoin holders have accumulated billions of dollars worth of the cryptocurrency.
Bitcoin's latest rally follows a 7% jump on Wednesday, which triggered more than $1 billion in short-position liquidations within an hour.
More than $3 billion in crypto short positions have been liquidated over the past 24 hours, adding fuel to the market's upward move.
For investors, the combination of easier financial conditions, ETF demand and expectations of a more defined US crypto regulatory framework has revived hopes that Bitcoin may be entering a stronger phase of its recovery.
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