Bitcoin’s Weekly Rally Boosts Investor Confidence

Bitcoin sees a 23% weekly gain as investor optimism returns amid positive developments in the cryptocurrency market.

Bitcoin was on track for a weekly gain of around 23% on Friday, following a series of positive developments for the world’s leading cryptocurrency. The digital asset was trading 6% higher at approximately $77,000, up from about $62,800 at the start of the week.

Crypto-linked stocks followed suit, with Coinbase advancing by 8% and another firm, Strategy, rising 6%. The rally commenced on Wednesday when Treasury yields pulled back sharply, a response to the Treasury’s unexpected intervention in the bond market, which eased pressure on risk assets.

This shift helped initiate a broader move into the cryptocurrency space, further amplified by a significant short squeeze that liquidated roughly $2.7 billion in crypto short positions, according to CoinGlass. Max Stuedlein, head of Partnerships at Sygnum APAC, noted that Bitcoin’s upward movement reflects a convergence of macroeconomic and policy factors.

Stuedlein commented, “The Treasury’s decision to double its buybacks of long-dated government debt is aimed at addressing long-term yield concerns, especially with rising borrowing costs linked to US debt levels and the crowding out effect caused by debt issuances from major companies.”

Investor sentiment continued to improve on Thursday, fueled by a last-ditch effort from the White House, alongside crypto industry leaders, to advance the Clarity Act through legislative channels in the coming weeks. The bill is seen as a potential catalyst to pull the market out of the prolonged crypto winter that began last fall, although its chances of passage appear slim.

Despite the recent upswing, Bitcoin still falls short of its 2026 high of $94,820 achieved in mid-January, as well as an all-time high of $126,198 recorded on October 6, last year.

Lucy Gazmararian, founder and managing partner at Token Bay Capital, shared her insights during Friday’s appearance on CNBC’s “Squawk Box Europe.” She observed that the cryptocurrency market is nearing the end of its bear cycle. “We’re anticipating one final flush and a potential drop of another 20%, consistent with prior cycles,” she stated, pointing to the market’s previously heavy leverage in short positions. “The market was heavily leveraging short, and they’ve been wiped out. The expectations among investors are tuned to the cycles of Bitcoin, and they position accordingly during those critical months leading up to transitions between bear and bull markets.”

Gazmararian advised Bitcoin investors to maintain a long-term perspective while labeling the current trades as “a play against monetary debasement.”

She warned, “But in the shorter term, it’s vibrating along these cycles because it’s still a highly volatile asset. It serves as an excellent playground for traders, especially given the array of tools now available for making bets in either direction on Bitcoin.”