Bitcoin was on track for a weekly gain of roughly 20% early Friday, extending a sharp rebound driven by a mix of macro policy shifts and a massive short squeeze, according to CNBC.
The world’s largest cryptocurrency was last seen at $75,343.01, up from $62,836.88 at the start of the week. The move marks a swift reversal after months of pressure on risk assets, with the token still trading well below its 2026 high of $94,820 and its all-time high of $126,198 from October 6 last year.
The rally began Wednesday, when Treasury yields pulled back sharply following the Treasury’s unexpected intervention in the bond market. The department announced it would double its buybacks of long-dated government debt, a step aimed at calming concerns over rising borrowing costs tied to U.S. debt levels and crowding out from hyperscaler issuances.
That easing of pressure on risk assets helped trigger a broader move into crypto, which was later amplified by a wave of forced buying. According to CoinGlass, roughly $2.7 billion in crypto short positions were liquidated, adding fuel to an already strong advance.
Max Stuedlein, head of Partnerships at Sygnum APAC, said the move reflects an alignment of macro and policy catalysts. He noted that the Treasury’s decision to double buybacks of long-dated debt is aimed at addressing long-term yield concerns, where borrowing costs have been rising on worries over U.S. debt levels and partial crowding out by debt issuances from hyperscalers.
Investor sentiment improved further on Thursday, helped by a last-ditch push from the White House and crypto industry leaders to get the Clarity Act across the finish line in the coming weeks. The bill is widely viewed as a potential catalyst that could push the market out of the crypto winter that began last fall, though the odds of it passing appear relatively slim.
Crypto-related stocks rallied in sympathy on Thursday. Coinbase closed up 7.5%, Circle advanced 6.45%, and Strategy rose 7.8%, according to CNBC.
Despite the strong weekly performance, bitcoin remains far from its highs. The 2026 peak of $94,820 was set in mid-January, and the all-time high of $126,198 was reached on October 6 of last year. The current price of $75,343.01 is still more than 40% below that record.
Analysts will be watching whether the rally can sustain itself, particularly given the uncertainty around the Clarity Act and the broader macro backdrop. The Treasury’s intervention and the short squeeze have provided a powerful boost, but whether that is enough to break the longer-term downtrend remains to be seen.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/21/bitcoin-gain-cryptocurrency-investors-optimistic.html
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