U.S. stocks advanced on Friday while bitcoin held near the $77,000 level following a weekly surge to a seven-day peak of $79,461. Softer Treasury yields offered markets some breathing room, though ongoing concerns surrounding inflation, government debt, and Middle East oil risks kept traders on edge.
During Friday's trading session, the Nasdaq Composite climbed 104.12 points, the NYSE Composite gained 194.68 points, the Dow Jones Industrial Average rose 517.84 points, and the S&P 500 added 32.83 points. Despite the bounce, long-term Treasury yields remained a central pressure point, driven by sticky inflation, heavy government borrowing, and swelling federal debt interest bills. The U.S. 30-year Treasury bond yield stood at 5.273%.
Treasury Secretary Scott Bessent's plan to expand purchases of outstanding longer-dated government bonds provided some initial relief by pushing yields lower, but the effect remained limited. Investors continued focusing on massive federal deficits and oil-driven inflation risks tied to tensions involving Iran and the Strait of Hormuz. Financial and crypto-linked stocks, including Coinbase, caught a bid during the session, while technology stocks remained sensitive to long-term yield movements.
Bitcoin Rallies and Derivatives Activity Increases
Bitcoin contrasted with the guarded sentiment in equities, rising from a low near $62,653 to an intraday high near $79,461 before settling around $77,000. The move marked one of bitcoin's strongest weeks since March 2023 and expanded activity in the derivatives sector.
Bitcoin futures open interest climbed alongside the price, with CME and Binance holding approximately $20.37 billion combined. Binance carried about $10.92 billion in open interest, while CME held $9.45 billion, with CME open interest rising 11.34% over a 24-hour period. The price advance triggered liquidations of leveraged short positions, contributing to the rally, although other exchanges recorded declines in open interest.
Options data on Deribit showed a moderately bullish positioning tilt heading into the weekend. Call options represented 59.53% of bitcoin options open interest compared to 40.47% for puts. Large open-interest positions included December 2026 calls at $80,000 and $120,000, as well as September calls at $70,000, $78,000, $82,000, and $100,000. Meanwhile, downside insurance remained visible through put positions at $60,000 and $66,000. Institutional demand also supported the advance, with U.S. spot bitcoin exchange-traded funds tracking toward more than $1 billion in weekly inflows.
Precious Metals Post Gains
Precious metals also reacted to shifts in yields and the U.S. dollar. Gold traded at $4,617.50 per ounce at Friday's Wall Street close, up 2.15% on the day, while silver gained 1.92% to reach $69.52. Platinum climbed 2.85% and palladium added 1.29%. The metals rally reflected both the temporary cooling in bond-market stress and ongoing anxieties surrounding debt, inflation, and geopolitical risk.
Upcoming tests for the financial markets include whether Treasury yields remain contained following government intervention, signals from the Jackson Hole symposium, oil price movements, and ongoing bitcoin ETF flows.
