Bitcoin, ether surge as Trump urges Congress to pass crypto Clarity Act

• Standard Chartered's Geoffrey Kendrick predicts Bitcoin could reach $100,000 by year-end 2026, citing favorable macro conditions from Treasury's bond buyback expansion
• The Treasury's decision to double buybacks of 20-year and 30-year bonds lowered yields significantly, increasing the attractiveness of higher-risk assets like cryptocurrencies
• The Hyperliquid token surged about 20% in 24 hours after Trump hinted at the decentralized exchange platform for perpetual futures trading

Summary

Market Movement:

Bitcoin and ether experienced significant surges following President Trump's push for Congress to pass the crypto Clarity Act. Bitcoin broke out of a six-week rangebound pattern between $62,000-$66,000, while ether climbed approximately 19% over seven days to reach $2,251, hitting a three-month high. The Hyperliquid token, associated with perpetual futures trading, jumped 20% in 24 hours.

Key Catalyst:

The U.S. Treasury's announcement to significantly increase buybacks of 20-year and 30-year bonds sent yields lower, enhancing the appeal of higher-risk assets like cryptocurrencies. This policy shift addresses long-term yield concerns related to rising U.S. debt levels and hyperscaler debt issuances.

Market Impact:

The rapid price movements triggered the second-largest short liquidation event in crypto history, according to Fundstrat's Thomas Lee. The combination of macro factors and policy catalysts created favorable conditions for digital assets.

Expert Outlook:

Geoffrey Kendrick, Standard Chartered's global head of digital assets research, projects bitcoin could reach $100,000 by year-end 2026, calling the Treasury's actions "exactly the type of thing Bitcoin loves." Analysts noted the alignment of macroeconomic conditions and supportive policy measures as key drivers.

Additional Context:

Trump reaffirmed support for the crypto industry with plans for substantial Bitcoin purchases, further bolstering market sentiment. The iShares Bitcoin Trust ETF also saw gains amid the broader rally in digital assets.