Trump Pushes Crypto Legislation, Treasury Liquidity Support Sends Bitcoin Soaring

Bitcoin surged to a fresh high on August 21, climbing 6% to $77,205 after a series of positive developments for the cryptocurrency market. The rally was triggered by President Trump's call for Congress to pass the Clarity Act, a bill that would establish a federal rulebook for cryptocurrencies.

At a White House summit with industry executives and regulators on August 19, Trump expressed his support for the legislation, which has been stalled in the Senate. The meeting was seen as a key moment for the industry, as it marked the first time Trump had publicly endorsed the bill.

The Treasury Department's announcement to double its long-end debt buyback operations from $2 billion to at least $4 billion also contributed to the rally. The move is seen as a signal that the Federal Reserve and Treasury are prioritizing liquidity support, which typically benefits assets like cryptocurrency.