Bitcoin rebounded sharply from weeks of low volatility, jumping more than 9% to hit a peak of $79,455 on Friday, its highest level since late May, according to LSEG data. It last traded at $76,679.

The rally converges multiple catalysts. Zaye Capital Markets' Naeem Aslam cites a jump in institutional spot demand, rising expectations of lower Treasury yields, and forced buying from traders closing losing bets. Bitcoin, along with gold and silver, also benefitted from the U.S. Treasury's announcement Wednesday to raise purchases of longer-term securities to at least $4 billion per operation from $2 billion, said David Morrison, senior market analyst at Trade Nation.

"The story here is that investors are looking for long-term safety as government debt across the developed world continues to grow," Trade Nation said, noting U.S. federal debt pushed above $40 trillion earlier this week. According to Zaye Capital, U.S. spot bitcoin products attracted almost $520 million in net inflows Wednesday, marking their largest daily inflow in about three and a half months.