Bitcoin Soars as US Treasury's Bond Buy-Back Boosts Liquidity

Bitcoin surged nearly six percent to over $77,000 on Friday, its highest level since May, as investors reacted to the US Treasury's move to buy back more of its own bonds. This added liquidity and increased investor risk appetite.

The rally in Bitcoin was also fueled by US President Donald Trump urging lawmakers to pass crypto legislation aimed at spurring its use, which has stalled in the Senate.

US stocks bounced back from recent losses, with all three main indexes higher in early trading. European markets were also up, but still set to post their worst weekly performance in nearly two months due to concerns over inflation and the growing mountain of government borrowing.