Bitcoin rallies 23% amid US debt concerns and regulatory developments

Bitcoin jumped more than 23% this week, trading near $77,559 and briefly topping $79,000. The price moved above its 200‑day moving average for the first time since November 2025, a technical signal often interpreted as bullish momentum.

Market drivers

Analysts link the rally to several factors:

• Rising US government debt, now above $40 trillion, and expectations of continued deficit spending.
• Increased inflows into Bitcoin and Ether exchange‑traded funds, which together attracted over $2.61 billion last week.
• Short‑position liquidations and renewed investor confidence in crypto assets.

Broader crypto performance

Other major cryptocurrencies also posted strong gains:

• Ethereum rose 31% to about $2,456.
• XRP surged 53% to $1.52.
• Altcoins such as Pump.fun, Ethena and Stacks posted weekly gains near 95‑99%.

Impact on related stocks

Shares of publicly listed crypto‑related companies—including Canaan, Metaplanet, Coinbase and Robinhood—recorded double‑digit increases, reflecting the broader market optimism.

Regulatory backdrop

The US Securities and Exchange Commission opened a 60‑day comment period on proposed rules that would create exemptions for token issuances up to $5 million over four years (or $75 million over 12 months with stricter reporting). The Commodity Futures Trading Commission signaled it would advance its own crypto framework if the CLARITY Act does not pass the Senate.

Outlook

Standard Chartered’s digital‑asset research head noted that the recent rally, driven largely by short liquidations and ETF inflows, could push Bitcoin toward its all‑time high of $126 000 before year‑end, though forecasts vary.