Digital assets continued their upward trajectory into the new week as Bitcoin and related crypto stocks extended a rally that marks the most significant three day surge since 2023. Bitcoin traded slightly under the 80,000 dollar mark on Monday, reaching levels not seen since May, while Ether climbed toward its highest point since January. This momentum spilled over into the equity markets, pushing up crypto treasury stocks like Strive and Strategy, alongside Ethereum linked firms such as Bitmine and Sharplink.
Market analysts are closely watching to see if this breakout signals a permanent reversal of the slump that has plagued Bitcoin since October. The sudden spike was fueled by a massive short squeeze following shifts in macroeconomic policy, specifically after the Treasury announced plans to double its purchases of long dated government bonds. This move caused yields to dip briefly, reigniting appetite for high risk investments and scarcity plays like gold and cryptocurrency.
Institutional confidence appears to be returning in force, evidenced by nearly two billion dollars in fresh inflows into spot Bitcoin ETFs last week, the strongest showing since the market hit its previous cycle peak in October. As prices soared, more than four billion dollars in bearish bets were wiped out through liquidations. Adding fuel to the fire is recent commentary from Bridgewater Associates founder Ray Dalio, who suggested investors hold some Bitcoin as a hedge against a potential global debt crisis facing major economies in the coming years.