Bitcoin Surges Past $77,000 on Trump Push for Crypto Clarity Act

The cryptocurrency market experienced a sharp reversal this week as Bitcoin reclaimed levels above $70,000 and pushed toward $77,000-$80,000, marking its strongest weekly performance in over three years.

This move was catalyzed by high-profile political support, with President Donald Trump publicly calling on Congress to advance the Clarity Act, a bill aimed at establishing clearer regulatory frameworks for digital assets.

The legislation is seen as a potential game-changer that could reduce uncertainty for institutions and foster greater adoption. Supporting this narrative, the U.S.

Treasury's decision to double bond buyback sizes helped lower long-term yields, creating a more favorable environment for risk assets like cryptocurrencies. Bitcoin's climb from around $63,000 at the start of the week reflects not only short-covering but also renewed optimism among investors.

Ether benefited similarly, surging more than 9% to levels near $2,300, highlighting correlated moves across major assets.

Crypto-related equities such as Coinbase and Circle advanced sharply, with gains exceeding 5-10% in some sessions, while products like the ProShares Bitcoin Strategy ETF (BITO) posted notable intraday increases.

This rally matters because it signals a potential shift from regulatory overhang to supportive policy tailwinds, which historically have driven multi-month uptrends in BTC and ETH.

Key drivers include the convergence of political momentum, Treasury interventions easing financial conditions, and a technical short squeeze that liquidated over $2.7 billion in bearish positions in a single day, with totals nearing $3.8 billion across two days.

Assets most affected include Bitcoin as the primary beneficiary, followed by Ethereum and select altcoins like Solana that saw double-digit gains.

Traders should watch for the Clarity Act's procedural votes in September, sustained ETF inflows exceeding $600 million daily for Bitcoin funds, and any follow-through above $80,000 resistance.

Failure to pass meaningful legislation or a reversal in yields could trigger profit-taking, while continued institutional buying may extend the bullish momentum into September. Overall, the episode underscores how regulatory clarity and macro liquidity can rapidly reprice the entire crypto complex.