Bitcoin surged above $77,000 in global markets on Friday, August 21, 2026, as renewed hopes for US cryptocurrency legislation and a surprise increase in Treasury bond buybacks encouraged investors to move towards riskier assets.

The world’s largest cryptocurrency by market value climbed 6.9 per cent to $77,675.94 after reaching its highest level since May, extending a powerful rally that has lifted its value by more than 20 per cent since Wednesday.

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Friday marked the third consecutive session in which Bitcoin gained more than 5 per cent, underlining the strength of the latest rebound in the cryptocurrency market.

The rally has been closely linked to renewed optimism around US crypto regulation after President Donald Trump urged lawmakers on Wednesday to advance the Clarity Act.

The legislation, which has stalled in the US Senate, is designed to establish clearer rules for digital assets and could provide greater certainty for the cryptocurrency industry.

For investors, the prospect of a more defined regulatory framework has helped revive confidence in the sector after months of uncertainty.

Bitcoin surges above $77,000 also coincided with a notable move by the US Treasury to increase its purchases of outstanding government bonds.

The Treasury’s decision to double its sovereign bond buybacks was aimed at easing pressure in the long-term debt market and reducing borrowing costs.

The move contributed to a broader improvement in investor risk appetite.

The intervention came after the yield on 30-year US Treasury bonds had climbed to levels not seen since 2007, shortly before the global financial crisis.

Lower Treasury yields can make traditionally safer fixed-income investments less attractive relative to assets carrying greater risk, potentially encouraging flows into equities and cryptocurrencies.

Bret Kenwell, a US investment analyst at eToro, said the combination of political optimism and changing financial conditions had given Bitcoin’s rally additional momentum.

“Renewed optimism around crypto progress in Washington helped light a fire under Bitcoin,” Kenwell said.

“Falling Treasury yields and short liquidations added fuel to the rally,” he added.

The latest surge comes against a backdrop of renewed debate in Washington over how the US should regulate the rapidly expanding digital asset industry.

Supporters of the Clarity Act argue that clearer rules could encourage innovation and institutional participation, while policymakers continue to debate the appropriate balance between market growth, consumer protection and regulatory oversight.

Bitcoin’s performance has also been amplified by market positioning.

Sharp price movements can trigger liquidations of leveraged short positions, forcing traders who had bet on falling prices to buy the cryptocurrency and potentially adding further upward pressure.

Despite the bullish momentum, the cryptocurrency remains highly sensitive to interest rates, regulatory decisions and shifts in investor sentiment.

The latest gains therefore represent a significant improvement in market confidence, but they do not remove the volatility that has historically accompanied Bitcoin.

For now, investors are watching Washington closely.

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Progress on US crypto legislation, together with developments in Treasury markets, could determine whether Bitcoin’s latest rally develops into a sustained recovery or gives way to another period of sharp price swings.