Prices for cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) are soaring on Aug. 20 as several catalysts emerge for digital assets.
Bitcoin, the largest cryptocurrency by market capitalization, has risen 11% in the past 24 hours to trade at $71,600 U.S. It’s the first time in months that Bitcoin has been above $70,000 U.S.
Ethereum, the second largest crypto, has gained close to 15% and is trading at $2,288.91 U.S. Other digital assets, such as Solana (SOL) and XRP (XRP), are each up more than 6%.
Until now, cryptocurrencies had been rangebound for the past six weeks and unable to break above key resistance levels.
After bottoming at $58,000 U.S. at the end of June, Bitcoin had been stuck trading between $60,000 U.S. and $65,000 U.S. Ethereum was unable to break above $2,000 U.S.
But now, digital assets are soaring after U.S. President Donald Trump urged Congress to pass the Clarity Act that provides a regulatory roadmap for the crypto sector.
Trump’s Clarity Act push comes after he met with several executives of crypto firms at the White House on Aug. 19. Analysts have cited the legislation as a key catalyst for cryptocurrencies.
Bitcoin and other crypto are also getting a boost after U.S. Treasury Secretary Scott Bessent intervened in the jittery bond market.
Bessent said that the U.S. Treasury will double its bond repurchases moving forward, a step that has led yields on both long and short-dated government bonds to fall.
The declining Treasury yields have given a boost to risk assets such as Bitcoin. Bond yields had spiked in recent days, putting downward pressure on crypto and equities.
While Bitcoin’s sudden recovery is being cheered by investors, the price of the cryptocurrency remains well below its all-time high of $126,198 U.S. reached last October.
