Crypto traders gained as bitcoin and ether rallied following President Donald Trump's public call for Congress to pass a Clarity Act for digital assets. The political signal coincided with a sharp drop in long-term Treasury yields after the U.S. Treasury announced a stepped-up buyback program for 20-year and 30-year bonds, a combination that drew fresh buying into higher-risk assets.
Bitcoin volatility, measured by Volmex Labs' BVIV Index, jumped above 43.5 after touching a year-to-date low of 35.5 on Friday, underscoring how rapidly market conditions shifted. Trading in the iShares Bitcoin Trust ETF, IBIT, surged to more than 4.5 times its 30-day average even before headlines around Hyperliquid, reflecting heavy flow into spot-linked products.
Retail and derivatives flows intensified around Hyperliquid, the decentralized exchange promoted as a hub for perpetual futures. CoinGecko data showed the Hyperliquid token up about 20% in the prior 24 hours, and the exchange's rising profile coincided with broader short-covering and leveraged-position adjustments.
Market participants pointed to the Treasury move as a key macro catalyst. "The Treasury's decision to double its buybacks of long-dated government debt is aimed at addressing long-term yield concerns, where borrowing costs have been rising on concerns over US debt levels and partial crowding out by debt issuances of hyperscalers," said Max Stuedlein, head of Partnerships at Sygnum APAC. Charlie Hayward, APAC regional director at RootstockCollective, said the yield drop made higher-risk assets like Bitcoin more attractive to investors.
Analysts and strategists framed the episode as both a liquidity and sentiment story. Geoffrey Kendrick, global head of digital assets research at Standard Chartered, called the Treasury announcement "exactly the type of thing Bitcoin loves," and added, "Investors should now be positioning for a move to $100,000 by year-end 2026." Fundstrat's Thomas Lee described the market moves as triggering "the second-largest ever short liquidation in history," a process that helped push ether to a three-month high.
Ether traded at $2,251 after a roughly 19% rise over seven days, per CoinGecko, while bitcoin had been range-bound between about $62,000 in support and $66,000 in resistance over the prior six weeks. Traders warned that renewed volatility and large liquidations increase margin risk across derivatives markets, and that follow-through from policy and Treasury actions will determine whether recent gains stick.
