Macro policy shift sparks a broad rebound in crypto assets; bitcoin surges more than 20% in three days, marking its biggest gain since 2023.
On Monday, Bitcoin and cryptocurrency-related stocks continued last week’s rally. Amid growing investor concerns over inflation and fiscal deficits, the flagship cryptocurrency broke through its previous trading range, with its price continuing to climb.
According to Zhihui Finance APP, on Monday, Bitcoin and cryptocurrency-related stocks continued last week's rally. As investors' concerns about inflation and fiscal deficit intensified, the flagship cryptocurrency broke through its previous trading range and its price kept climbing.
Bitcoin's price rose by more than 1% during the day, approaching the $80,000 mark, reaching this level for the first time since May; Ethereum was up 2% to around $2,470, nearing its highest point since January.
Cryptocurrency holding concept stocks followed the rise of blue-chip crypto assets. Strive surged 8%, Strategy (MSTR.US) rose 2%; Bitmine and Sharplink, which hold Ethereum assets, gained 5% and 4% respectively.
The market is watching whether this rebound signals a reversal in Bitcoin's trend. Since last October, Bitcoin's price has been persistently sluggish, and the current period coincides with a seasonally strong window. BTIG analyst Jonathan Krinsky noted in a Monday report that Bitcoin had a similar move in January 2023—soaring nearly 20% over three days and breaking through its downtrend line, but the rally soon faded, with support only found at the 200-day moving average.
This round of gains started with last week's macro shift. After the US Treasury announced it would double its holdings of long-term government bonds, yields temporarily fell, boosting demand for allocations to risk assets like Bitcoin and scarce assets such as gold. This also triggered a Bitcoin short squeeze, with a cumulative rise of more than 20% over three days—the largest increase since 2023.
Institutional demand returned in tandem. Last week, net inflows into spot Bitcoin ETFs reached $1.92 billion, marking the largest weekly inflow since October last year (when Bitcoin hit a cyclical high). Additionally, as prices rose, over $4 billion worth of crypto short positions were forcibly liquidated.
Ray Dalio, founder of Bridgewater, warned that major economies may face a debt crisis over the next several years, and advised investors to “allocate moderately” to Bitcoin—a statement that also provided additional support for the rise in crypto assets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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