Bitcoin traded above $78,000 on Friday, clocking its third consecutive day of gains, as a rebound in tech stocks lifted risk assets out of a slump induced by renewed inflationary concerns and higher U.S. interest rates.

The flagship cryptocurrency was up 2% at $78,078, which puts it on course for a positive end to the week, after slipping to a near four-week low following the U.S. Senate's rejection of a crypto-friendly bill, the Clarity Act, on Tuesday.

The move higher comes after Thursday's session saw a tech-fueled relief rally with broad gains seen from chip makers to data-storage companies across the major indexes.

But the Federal Reserve's quarter-point rate hike on Wednesday has complicated the path for non-yielding assets such as bitcoin and gold, which tend to lose their relative shine in a rate-raising cycle when compared with the return offered on bonds.

Bitcoin could outperform gold in the coming months if investors unwind some of the short positions surrounding cryptocurrency exchange-traded funds, according to J.P. Morgan.

Analysts led by J.P. Morgan's Nikolaos Panigirtzoglou wrote that short interest in the flagship bitcoin exchange-traded fund, IBIT, remains close to year-to-date highs, while short interest in gold ETFs stands below historical averages.

"This contrast suggests that bitcoin still faces an overall more sceptical positioning backdrop than gold, perhaps due to more elevated hedging demand, despite the recent inflows and build up of futures positioning," the analysts wrote.