Bitcoin soars on the back of cryptocurrency bill

The price of Bitcoin soared on Friday for the third consecutive day, driven by a Donald Trump-led cryptocurrency bill and by the decision of the Treasury Department to increase purchases of its own bonds.

Bitcoin, the world's largest cryptocurrency by market capitalization, rose 6.9% to $77,675.94, after reaching its highest level since May, and has gained more than 20% since Wednesday.

Friday marked the third consecutive day that Bitcoin rose more than 5%.

The significant rally came after Trump urged lawmakers on Wednesday to pass the Clarity Act, a cryptocurrency bill stalled in the Senate.

Bitcoin also benefited from the Treasury Department's offer to reduce long-term borrowing costs by doubling its repurchases of sovereign bonds, a move that led investors to shift toward riskier assets.

The intervention came after the yield on 30-year Treasury bonds skyrocketed to levels not seen since 2007, just before the global financial crisis.

The prospect of lower yields makes safer investments less attractive, which helps drive demand for riskier assets such as cryptocurrencies.

"Renewed optimism around crypto progress in Washington helped light a fire under Bitcoin," said Bret Kenwell, an analyst at eToro in the United States.