Bitcoin Hits 5-Month High as Institutional Demand and Dollar Selling Converge

Bitcoin surged to its highest level since late May on Friday, climbing more than 9% to reach $79,455. The cryptocurrency's jump can be attributed to a combination of factors, including increasing institutional demand, short covering, and progress on the Clarity Act.

The U.S. Treasury's plans to expand bond buybacks have led investors to view the move as a sign of stress, sparking fresh dollar selling. As a result, gold prices climbed above $4,600 an ounce.

Meanwhile, business activity in Europe and Asia has picked up despite ongoing headwinds related to the war in the Middle East. In Japan, consumer inflation increased last month, firming expectations that the next interest-rate hike is around the corner.