Bitcoin climbed above $72,000 on March 4, 2026, marking its highest level in nearly a month amid President Trump's endorsement of the Clarity Act, a key cryptocurrency market structure bill. The rally, which saw gains of around 6% to 8% in 24 hours, was bolstered by a South Korean stock market plunge and short position liquidations totaling $110 million. Other major cryptocurrencies like Ethereum and XRP also rose, pushing total market capitalization over $2.4 trillion.
Bitcoin reached $72,852 during the trading session on March 4, 2026, up more than 6% over the previous 24 hours, according to CoinDesk data. This surge followed President Donald Trump's public support for the Clarity Act, which aims to establish a framework for digital assets including stablecoins. In a social media post, Trump criticized banks for undermining the legislation, stating, “The Genius Act is being threatened and undermined by the Banks, and that is unacceptable.” He urged lenders to reach a deal with the crypto industry in the interest of Americans.
The rally coincided with a 20% drop in South Korea's Kospi index over two trading sessions, after a 180% rise since April 2025 driven by AI-related stocks. Analysts noted that South Korean retail traders, known for rotating between speculative markets, appeared to shift funds back to crypto, with trading volumes rising but the Kimchi premium remaining modest at near 1%.
Short liquidations amplified the move, as Bitcoin broke above the $70,000 resistance level, forcing $110 million in short positions to close and triggering buy orders. On-chain data from CryptoQuant showed exchange inflows dropping to 28,235 BTC, indicating reduced selling pressure from large holders. Macro factors included a 63% correlation with the S&P 500 and comments from a Federal Reserve official on potentially pausing interest rate hikes, easing risk sentiment.
Crypto-related stocks rebounded sharply: Coinbase (COIN) rose 12% to over $200, MicroStrategy (MSTR) gained nearly 9%, and miners like Bitfarms (BITF) and Hut 8 (HUT) advanced 6%-10%. Ethereum climbed to $2,064, up 5.7%, while XRP traded near $1.40, up 4.2%, and Solana reached $90, up 7.7%. The broader CoinDesk 20 Index rose over 5% to 2,025 points.
Bitcoin demonstrated resilience amid escalating Middle East tensions, holding support around $65,000 since the conflict intensified, unlike gold which retreated from $5,400 per ounce and Asian equities which slid on rising energy costs. U.S. Bitcoin spot ETFs saw $225 million in net inflows on March 3. The cryptocurrency remains 43% below its all-time high of $126,198 from October 7, 2025.
The Clarity Act debate centers on yield-bearing stablecoins, with banks warning of potential $6.6 trillion in deposit losses. JPMorgan CEO Jamie Dimon argued for equal regulation, saying, “It can’t be, you have these people doing one thing without any regulation, and these people doing another.” Crypto advocates, including Patrick Witt from the President’s Council of Advisors for Digital Assets, countered that stablecoins backed by Treasuries differ from deposits and do not require bank-like rules.
