Macro shift detonates a full rebound in crypto assets, Bitcoin surged more than 20% in three days, the biggest increase since 2023

The Zhitong Finance App learned that on Monday, Bitcoin and crypto-related stocks continued their gains last week. As investors' concerns about inflation and fiscal deficits intensified, the flagship cryptocurrency broke through the previous trading range and continued to rise in price.

The price of Bitcoin rose more than 1% on the same day, approaching the 80,000 US dollar mark, hitting this level for the first time since May; Ethereum rose 2% to about 2,470 US dollars, close to the high level since January.

Cryptocurrency holding concept stocks followed the upward trend of blue-chip crypto assets. Strive climbed 8%, Strategy (MSTR.US) rose 2%; Bitmine and Sharplink, which hold Ethereum assets, rose 5% and 4%, respectively.

The market is watching to see if this round of rebound marks a turning point in Bitcoin's trend. Bitcoin prices have continued to be sluggish since October of last year, and it is currently in a strong seasonal window. BTIG analyst Jonathan Klinsky pointed out in a Monday report that Bitcoin showed a similar trend in January 2023 — it surged about 20% on the 3rd and broke through the downward trend line, but then the gains subsided and fell back to the 200-day EMA to be supported.

The current round of the market began with a macro-level shift last week. Affected by the US Treasury's announcement that it would double its holdings of long-term treasury bonds, the yield declined briefly, boosting the allocation demand for risky assets such as Bitcoin and scarce assets such as gold. At the same time, Bitcoin bears squeezed. The three-day cumulative increase was more than 20%, the biggest since 2023.

Institutional demand is returning in sync. The net inflow of funds from spot Bitcoin ETFs reached 1.92 billion US dollars last week, the largest weekly inflow since October last year (when Bitcoin hit the top of the cycle). Furthermore, along with the price increase, over $4 billion of short crypto positions were liquidated.

Bridgewater Fund founder Ray Dario warned that major economies may face debt crises in the next few years and advised investors to “allocate moderately” Bitcoin. This statement also provided additional support for the rise in crypto assets.