Bitcoin surged 11.2% on Thursday, surpassing $70,000 for the first time in more than two months as falling US Treasury yields and renewed optimism over cryptocurrency regulation boosted demand for risk assets.
The world’s largest cryptocurrency climbed to around $71,700 as of 0900GMT, its highest level since June 1, extending a sharp rally that began a day earlier.
Bitcoin’s market capitalization rose 11.1% over the past 24 hours to $1.43 trillion, while its daily trading volume surged over 260% to $60.8 billion.
The value of the broader crypto market also climbed 10.23% to $2.42 trillion, while Ethereum, the second-largest cryptocurrency, rose 18.6% to around $2,270.
Bitcoin had already posted its strongest daily gain since March on Wednesday ahead of US President Donald Trump’s meeting with executives from major cryptocurrency companies, including Coinbase, Kraken operator Payward, and Blockchain.com.
The meeting revived hopes for progress on the Clarity Act, a proposed market-structure bill intended to clarify the regulatory framework for digital assets in the US. The measure failed to reach a Senate vote before lawmakers began their August recess.
The rally also gained momentum after the US Treasury announced plans to increase buybacks of longer-term government debt. The move pushed Treasury yields sharply lower and sent the US dollar to its weakest level in three months.
Lower bond yields tend to support cryptocurrencies and other risk assets by reducing the appeal of interest-bearing investments, while a weaker dollar makes dollar-denominated assets more attractive to overseas investors.
The latest advance followed Wednesday’s rally, which wiped out approximately $2.7 billion in bearish cryptocurrency positions over 24 hours, according to data from crypto market tracker CoinGlass.