Bitcoin jumps, stocks bounce as traders weigh US Treasury action

Bitcoin bounced and global stocks clawed back some of their recent losses on Friday as investors assessed the US Treasury's efforts to push down long-term borrowing costs.

Oil prices held on to the week's gains as the United States and Iran remained deadlocked over a deal to reopen the Strait of Hormuz. 

Bitcoin climbed almost six percent to over $77,000 and is up more than 20 percent this week -- to its highest levels since May -- as the US Treasury's surprise move to buy back more of its own bonds increased liquidity and added to investor's risk appetite. Gold also rose.  

The rally in the world's biggest cryptocurrency by market value was also spurred by US President Donald Trump urging lawmakers to pass crypto legislation aimed at spurring its use, which has stalled in the Senate. 

"The turmoil in the debt markets continues despite efforts to calm feverish borrowing costs," said Susannah Streeter, chief investment strategist at Wealth Club. 

"Investors remain concerned about inflationary risks and the growing mountain of government borrowing, while at the same time, debt being issued by tech giants building out the AI revolution is offering stiff competition," she added.

The three main US stocks indexes were all higher in early trading after having mostly fallen this week.