Bitcoin surged for a third consecutive day on Friday, gaining 6.9 percent to $77,675.94 as optimism over US cryptocurrency legislation and a surprise move by the US Treasury boosted demand for riskier assets.
Gatekeepers News reports that the world’s largest cryptocurrency by market value reached its highest level since May and has gained more than 20 percent since Wednesday.
Friday marked the third consecutive session in which bitcoin rose by more than five percent.
The rally followed US President Donald Trump’s call on Wednesday for lawmakers to pass the Clarity Act, a proposed legislation aimed at encouraging cryptocurrency use that has stalled in the Senate.
Bitcoin also received a boost from the US Treasury’s decision to double its purchases of US government bonds in an effort to lower long-term borrowing costs.
The move improved investor risk appetite after the yield on 30-year US Treasury bonds rose to levels last seen in 2007, shortly before the global financial crisis.
Lower bond yields can make traditionally safer investments less attractive, potentially encouraging investors to move funds into riskier assets such as cryptocurrencies.
“Renewed optimism around crypto progress in Washington helped light a fire under Bitcoin,” said Bret Kenwell, US investment analyst at eToro.
“Falling Treasury yields and short liquidations added fuel to the rally,” he added.
