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Bitcoin experiences a significant weekly rally as the administration supports crypto market structure legislation.

Bitcoin recently experienced a significant weekly rally, reaching levels not seen since May. The surge was driven by a combination of macro-economic factors and policy support from the administration. Treasury Secretary Scott Bessent's plan to double long-dated Treasury buybacks initially lowered yields and weakened the dollar, creating a favorable environment for risk assets. This was further amplified by a massive short squeeze where approximately $2.7 billion in crypto short positions were liquidated. President Trump again pressed Congress to pass the Clarity Act, reinforcing the administration's supportive stance on digital assets. This legislative push is seen as a key catalyst to move the market out of the 'crypto winter.' Institutional demand is evidenced by the other large inflows into spot crypto ETFs, with bitcoin funds attracting $1.92 billion during the week. While the rally is swift, analysts suggest that sustained demand is required to establish a new trading range. Bitcoin remains well below its all-time high of $126,198, which it hit on October 6 last year.

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