Bitcoin Surges 18% in Two Days Amid Clarity Act Hopes and Bond Buys
Bitcoin surged sharply in recent days, gaining approximately 18% over two days. On August 21, its price briefly rose to around $77,000, with a total market capitalization of about $1.5 trillion. This increase represents more than $220 billion added to the digital asset's market value in just two days.
The rapid growth was not limited to Bitcoin alone, as the total market capitalization of the crypto market increased by around $400 billion over the past five days. This surge demonstrates how quickly money can flow back into digital assets after a period of decline.
Analysts at VanEck noted signs of capitulation among some investors and increased market volatility just before the sharp price increase. However, the situation shifted dramatically as positive signals from the U.S. supported the recovery. The Clarity Act, which aims to clarify rules governing digital assets, was called on by President Donald Trump, leading to Bitcoin rising above $70,000 for the first time since June.
The U.S. Treasury Department's move to increase purchases of long-term government bonds also contributed to the favorable conditions for risky assets like cryptocurrencies. However, it is essential to note that the crypto market remains highly volatile, and a correction may be triggered by investors taking profits after a sharp price increase.