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The price of Bitcoin and cryptocurrency stocks surged as the week began, following a breakout from its trading range amid rising investor concerns regarding inflation and fiscal deficits.
On Monday, Bitcoin saw an increase of over 1%, trading just below $80,000—levels not reached since May. Similarly, Ethereum rose by 2%, reaching approximately $2,470, close to its highest point since January.
Stocks related to crypto success mirrored these gains. Strive increased by 8%, while Strategy gained 2%. Additionally, Ethereum treasury companies Bitmine and Sharplink increased by 5% and 4%, respectively.
Market observers are curious whether this upward trend signals a change for Bitcoin, which has been mired in a protracted decline since October, as it approaches a typically bullish season.
BTC in 2026
Jonathan Krinsky of BTIG noted in a Monday report that Bitcoin experienced a similar surge in January 2023, climbing nearly 20% within three days, breaking above its downward trend. However, that rally also subsided and Bitcoin retraced to its 200-day moving average, which offered support.
This upward movement followed a significant macroeconomic shift last week, triggering a short squeeze in Bitcoin and resulting in a gain of over 20% in three days, marking the most substantial rally since 2023. After the Treasury announced plans to double its purchases of long-term government bonds, yields briefly dropped, breathing new life into demand for risk assets like Bitcoin and precious commodities like gold.
Institutional interest also returned, as spot Bitcoin ETFs recorded $1.92 billion in inflows last week—the highest weekly influx since October when Bitcoin hit its cycle peak. Over $4 billion in bearish crypto positions were liquidated as prices surged.
Ray Dalio, founder of Bridgewater Associates, cautioned that significant economies might confront a debt crisis in the coming years, advising investors to hold “a bit” of Bitcoin, thus underscoring the cryptocurrency’s upward trend.
