The Bitcoin (CRYPTO: BTC) price has been on fire this week.
The world's first and biggest crypto by market cap really took off on Wednesday.
It's currently trading for US$73,307, up 15.6% since this time last week, according to data from CoinMarketCap.
While BTC remains down 42% from the all-time high of US$126,198 it reached on 7 October last year, this week's rally will certainly come as welcome news to crypto investors awaiting a rebound.
So, what's driving the strong gains?
Image source: Getty Images
What's boosting the Bitcoin price?
Last month, the Bitcoin price briefly caught some tailwinds after United States Treasury Secretary Scott Bessent said that the US' crypto regulating Clarity Act looked set to get the green light from Congress.
The Clarity Act is intended to give the SEC and the CFTC departments oversight into crypto trading. If passed, it could fully open the door to trading in cryptos like Bitcoin and Ethereum (CRYPTO: ETH) in US stock markets.
However, with the Clarity Act now stalled in Congress, those tailwinds have faded.
But crypto investors still have Bessent to thank for the big boost in the Bitcoin price this week. Not to mention the Ethereum price, which at US$2,345, is up 24.6% since last Friday. The world's number two crypto by market cap hit its own all-time high of US$4,954 on 25 August 2025.
On Wednesday, Bessent announced the US Treasury Department will at least double the amount of longer-dated treasuries it plans to buy back to address surging bond yields. He said this "could be more than the $4 billion" size the administration initially planned.
While yields have yet to sustainably fall, the Bitcoin price took off on the hopes that the decades' high borrowing costs in the world's top economy may come off the boil.
And with US government debt topping US$40 trillion this week, the debasement trade – where investors buy assets like gold or crypto as a hedge against a decaying greenback – appears to be back on.
"The market read this as a quiet form of quantitative easing, a move that weakens the dollar and sends scarce, debasement-hedge assets like Bitcoin higher," Matt Mena, senior strategist at 21Shares, said (quoted by Fortune).
Looking to what may be ahead for the Bitcoin price, Zach Pandl, Grayscale's head of research, speculated:
Our best guess is that Bitcoin potentially bottomed at $58,000 earlier this summer… and [that] it's a compelling time for investors with longer-term horizons to be allocating to Bitcoin and the crypto asset class.
