Bitcoin, ether, and other cryptocurrencies experienced a significant surge following U.S. President Donald Trump's public endorsement of the crypto sector and his call for Congress to pass the Crypto Clarity Act, a bill expected to benefit the industry [1]. Trump also indicated plans to purchase sizable amounts of Bitcoin and hinted at potential regulation of Hyperliquid, a decentralized exchange popular for perpetual futures trading. In response, the Hyperliquid token jumped approximately 20% over the past 24 hours, according to CoinGecko data [1].
Market activity intensified as the iShares Bitcoin Trust ETF (IBIT) saw trading volumes more than 4.5 times its 30-day average, even before the Hyperliquid news broke [1]. Bitcoin volatility, as measured by Volmex Labs' BVIV Index, spiked to above 43.5 after reaching a year-to-date low of 35.5 just days earlier [1]. Ether also rallied, climbing about 19% in the past week to $2,251, marking a three-month high [1].
The rally was further fueled by macroeconomic developments, notably the U.S. Treasury's announcement of a significant increase in buybacks of 20-year and 30-year bonds, which drove yields lower and made riskier assets like Bitcoin more attractive to investors [1]. Charlie Hayward of Rootstock Collective and Max Stuedlein of Sygnum APAC both highlighted the alignment of macro and policy catalysts, with Stuedlein noting that the Treasury's move to double buybacks aims to address concerns over rising borrowing costs and U.S. debt levels [1]. Geoffrey Kendrick of Standard Chartered emphasized that this type of back-end support is favorable for Bitcoin, reiterating his view that investors should position for a move to $100,000 by year-end 2026 [1].
The recent surge triggered the second-largest short liquidation in crypto history, according to Thomas Lee of Fundstrat, and pushed ether to its highest level in three months [1]. Prior to this rally, Bitcoin had been rangebound between $62,000 and $66,000 for six weeks, frustrating traders due to the lack of volatility despite the cryptocurrency having halved from its all-time high last October, as noted by David Morrison of Trade Nation [1].
CONCLUSION
The combination of President Trump's vocal support for crypto legislation, favorable macroeconomic shifts, and increased trading activity has driven a sharp rally in Bitcoin, ether, and related assets. With analysts projecting a potential move to $100,000 for Bitcoin by the end of 2026, market sentiment has turned decisively positive. The surge has also resulted in significant short liquidations, underscoring the renewed volatility and optimism in the sector.