Analysis: This round of Bitcoin rally is driven by factors including rising optimism over crypto regulation and the expansion of US Treasury repo operations.

According to Bloomberg, as industry executives gather at the White House and market regulatory optimism builds, Bitcoin broke through a months-long trading range on Wednesday, surging as much as 8% to around $69,500—its largest gain since March and the highest level since early June. Trump is expected to hold meetings with executives from firms including Coinbase, Payward, and Blockchain.com. Axel Rudolph, chief technical analyst at IG, said the rally toward $70,000 was triggered by short covering, signaling a recovery in buyer confidence, though whether the momentum can hold and push to challenge the $75,000 level remains a key test. Bitcoin also reclaimed its 100-day and 200-day moving averages on Wednesday. Data from Coinglass showed the sharp rise triggered over $1 billion in liquidations within an hour, with total liquidations reaching roughly $1.5 billion over the past 24 hours. On the regulatory front, the U.S. SEC this week proposed exempting certain digital asset issuers from securities registration requirements to support early-stage and fundraising-stage companies. Meanwhile, the U.S. Treasury Department announced it would at least double the size of its liquidity-supporting repo operations for 10- to 30-year Treasuries, pushing U.S. Treasury yields and the dollar lower. Joshua Lim, co-head of markets at FalconX, noted that the market has been flooded with sell orders over the past weeks, but Bitcoin held firm in the $60,000 range, which subsequently shifted market sentiment and narratives. Data from Deribit showed Bitcoin options positions are concentrated near $60,000 put options and $70,000 call options.