Bitcoin and cryptocurrency-related stocks extended their rally at the start of the week, with bitcoin rising 2% on Monday to trade just under $80,000, a level not seen since May. Ether also climbed 2% to about $2,500, its highest since January. The rally follows a breakout from bitcoin's previous trading range, driven by growing investor concerns over inflation and the fiscal deficit [1].
Crypto treasury stocks mirrored the gains in major cryptocurrencies, with Strategy and Strive increasing by 2% and 4%, respectively, while Bitmine and Sharplink, both ETH treasury names, gained 3% and 2% [1]. The surge was fueled by a macroeconomic shift last week, including the Treasury's announcement to double its purchases of longer-dated government bonds, which briefly pushed yields lower and revived demand for risk assets such as bitcoin and gold [1].
A significant short squeeze in bitcoin contributed to a more than 20% gain over three days—the largest such rally since 2023. During this period, more than $4 billion in bearish crypto positions were liquidated as prices rose [1]. Institutional demand also returned, with spot bitcoin ETFs recording $1.92 billion in inflows last week, marking their largest weekly inflow since October, when bitcoin reached its cycle peak [1].
BTIG's Jonathan Krinsky noted that bitcoin experienced a similar surge in January 2023, rallying about 20% in three days before pulling back to its 200-day moving average, where it found support [1]. Bridgewater Associates founder Ray Dalio warned that major economies could face a debt crisis in the coming years and recommended investors hold 'a bit' of bitcoin, reinforcing the asset's appeal during the current rally [1].
CONCLUSION
Bitcoin's recent rally, marked by a nearly 20% surge in three days and strong institutional inflows, signals renewed investor interest amid macroeconomic uncertainty. While historical patterns suggest caution, the current momentum and endorsements from prominent investors like Ray Dalio highlight bitcoin's growing role as a hedge in volatile markets.