Bitcoin had been stuck in the mud for months. In the last two days, it remembered how to move.
Earlier in the week, bitcoin was changing hands near $63,000.
The upward move began Wednesday when a sharp drop in Treasury yields took the pressure off risk assets. That triggered a broader move and a short squeeze that liquidated about $2.7 billion in crypto short positions, according to CoinGlass. When short sellers are forced to buy back, it pushes prices even higher.
Crypto-related stocks also joined the party. Coinbase, Strategy, and another company each climbed roughly 7%, extending their prior session gains.
The price move came alongside a flurry of political activity. President Donald Trump met with executives from Coinbase, Kraken, Robinhood, Ripple, and ChainLink, where he pressed Congress to approve a "fair version" of the Clarity Act by year's end.
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"We need Congress to take the next step by passing the Clarity Act," Trump said in a statement. He called it "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."
The White House convened the meeting on short notice, and it took place ahead of the Commodity Futures Trading Commission's first Innovation Advisory Committee meeting on Thursday. The timing signals the administration is serious about getting crypto rules in place before the year ends.
The Clarity Act is seen as a potential catalyst to pull the market out of the crypto downturn that started last autumn. But investors had largely written it off after the Senate went on its August recess without voting.
A loss would be a major blow to the industry's hopes for clear federal rules.
There is a catch. Democrats want tougher ethics rules to stop government workers from using their positions for personal crypto gains. Republicans are resisting those tougher rules. That divide is the main sticking point.
Even with the recent pop, bitcoin sits about 40% below its October 2025 peak of roughly $126,000. The two-day rally is a reminder that crypto moves quickly in both directions.
For regular investors, the real story is the bill itself. If the Clarity Act passes, it would create a clear set of federal rules for the crypto market, something the industry has never had. That could bring more mainstream money in and change how the market works for everyday people.
For now, all eyes turn to September 15. A win there could open a new chapter. A loss likely sends bitcoin back to the waiting game.
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