Bitcoin rallies to 2-month high as clarity act momentum builds

August 21, 2026 (MLN): Bitcoin surged more than 5% on Thursday to $72,383.99, marking its highest level since June 1, as renewed optimism surrounding U.S. crypto legislation and easing Treasury yields fueled a sharp rally across digital assets.

The world's largest cryptocurrency has gained around 12% over the past two sessions, rebounding strongly from levels near $63,000 earlier this week.

The rally initially gathered momentum on Wednesday after Treasury yields declined sharply, providing relief to risk-sensitive assets.

The move was further amplified by a large-scale short squeeze, with approximately $2.7bn worth of crypto short positions liquidated, according to CNBC.

Crypto-related stocks also moved higher, with Coinbase and Circle gaining around 7% each, while Strategy extended its advance from the previous session.

Investor sentiment was further boosted after the White House hosted executives from major crypto companies, including Coinbase, Kraken, Robinhood, Ripple and Chainlink.

During the meeting, President Donald Trump urged Congress to advance a "fair version" of the Clarity Act, a proposed crypto market structure bill that has emerged as a key focus for the U.S. digital asset industry.

Trump called on lawmakers to pass the legislation before the end of the year, arguing that a clear regulatory framework would strengthen the country's position in financial innovation and maintain its competitiveness against other major economies.

The bill, however, remains subject to negotiations between Republicans and Democrats.

Democratic lawmakers have sought stricter ethics provisions aimed at preventing public officials from personally benefiting from crypto-related businesses, while Republicans have opposed measures, they consider excessively restrictive.

The Clarity Act had appeared increasingly uncertain after the Senate entered its August recess without holding a vote, with negotiations continuing over ethics rules and other regulatory provisions.

A failure to clear the Senate's initial procedural vote scheduled for September 15 could significantly weaken the legislation's prospects for 2026 as attention shifts toward other priorities ahead of the midterm elections.

Despite the latest rally, Bitcoin remains roughly 40% below its record high of around $126,000 reached in October 2025.

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