Bitcoin bounces back

Remember bitcoin? After hitting an all-time high near $126,000 in October, it has spent months in a slump as macroeconomic pressure, a rotation into AI stocks, and fading speculative enthusiasm took some air out of the crypto bubble. Bitcoin’s still down 16.91% this year.

But the king of crypto came roaring back today, jumping 5.32% and topping $70,000 for the first time in months. Ethereum, Solana, and XRP rallied alongside it.

A perfect crypto storm

As you read above, the national debt has now topped $40 trillion, fueling concerns that heavy government borrowing could weaken the dollar. That’s making scarce assets like bitcoin more attractive—and the Treasury’s decision to “at least double” planned buybacks of long-dated government debt added a more immediate boost by pushing yields and the dollar lower in the short term.

Then came the short squeeze. CoinGlass estimates that $3.1 billion worth of short crypto positions were liquidated in 24 hours, including about $1.8 billion tied to bitcoin, while long liquidations totaled just $277 million.

Bitcoin also got a boost from President Trump, who urged Congress to fast-track the CLARITY Act—legislation that would establish a clearer regulatory framework for the crypto industry. “It’s a very, very powerful structured legislation which will keep us ahead of China, keep us ahead of everyone else, will open the door to the next wave of innovations and innovators,” Trump said at a White House meeting with crypto executives.

Don’t call it a comeback

The rally was welcome news for crypto-linked stocks today: Strategy jumped 7.73%, Coinbase rose 7.58%, and Circle gained 6.42%. If bitcoin can hold on to the momentum, those companies could continue climbing.

But it’s hard to know how long the rally will last, especially with crypto’s notoriously volatile track record. Deribit data shows roughly $1.5 billion tied to calls at $70,000 and $1.4 billion tied to puts at $60,000, suggesting traders are bracing for a big move in either direction.

The Senate’s first procedural vote on Sept. 15 could make or break the CLARITY Act’s chances this year—and help determine the fate of the battered crypto market once and for all.—SY