Bitcoin Set For Biggest Weekly Gain In 3 Years As Bond Yields Fall, ETF Inflows Surge

Bitcoin is on track for its strongest weekly rally in more than three years as investors respond to falling long-term US bond yields, stronger institutional demand and renewed optimism around the cryptocurrency market.

The world’s largest cryptocurrency climbed as much as 9.4% and was trading near $77,500 in late New York trading. Its weekly gain has reached roughly 23%, potentially marking its biggest seven-day increase since March 2023.

Bond market move triggers Bitcoin rally

The latest surge followed US Treasury Secretary Scott Bessent’s announcement that the government would at least double its purchases of longer-dated bonds. The move pushed long-term yields lower and encouraged investors to increase exposure to riskier assets.

The rally was also amplified by a wave of short-position liquidations. Nearly $2.5 billion in leveraged bearish Bitcoin positions and about $4.5 billion across cryptocurrencies were reportedly liquidated over three days, according to Coinglass data.

Institutional demand has provided another boost. US-listed spot Bitcoin ETFs are heading for their strongest weekly inflows since January, with the 13 funds attracting more than $1 billion so far this week.

Trump support and ETF demand lift sentiment

Investor confidence also improved after US President Donald Trump met cryptocurrency industry executives, including representatives from Coinbase and other major firms. Trump urged the Senate to advance the Clarity Act, legislation aimed at establishing a regulatory framework for digital assets.

Shares of crypto-linked companies also rallied, with Coinbase gaining 8.2%, Strategy rising 6% and Circle advancing 5.2%.

Despite the rally, Bitcoin remains well below its record high of more than $126,000 reached last October, underscoring the cryptocurrency’s continued volatility.