Bitcoin tops $79,000, highest level since May

Bitcoin climbed above $79,000, its strongest level since May, extending a rally that began after the US Treasury said it would increase buybacks of long-term government bonds to support market liquidity. The advance built on gains earlier in the week that were also driven by President Trump's push for Congress to pass the CLARITY Act, the crypto market structure bill that has stalled in the Senate. Bitcoin exchange-traded funds alone took in roughly $1.6 billion over the week, a pace analysts pointed to alongside the unwinding of short positions as drivers of the rally's persistence. Ether tracked bitcoin higher across the same stretch.

The rally's two main drivers, a Treasury buyback plan and proposed legislation, are both still pending rather than finalised, so the gains reflect anticipation of policy rather than policy already delivered.