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Bitcoin and crypto stocks extended their gains beginning the week after the flagship cryptocurrency broke out of a trading range as investors grew concerned about inflation and budget deficits.
price of Bitcoin It rose 2% on Monday to trade at just under $80,000, its lowest level since May. ether It rose 2% to about $2,500, trading at its highest level since January.
Cryptocurrency stocks also rose following blue-chip cryptocurrencies. Strategy and Strive rose 2% and 4% respectively, while ETH Treasury’s name bitmine and sharp link They increased by 3% and 2%, respectively.
Investors believe that a rise in the price of Bitcoin, which has been in a prolonged slump since October, could mark a turning point, ahead of a period of seasonal bullishness in Bitcoin prices.
BTC in 2026
BTIG’s Jonathan Krinsky noted in a note on Monday that Bitcoin made a similar move in January 2023, again surging around 20% in three days and breaking out of a downtrend. However, the rally has since subsided and Bitcoin has returned to the 200-day moving average, where it found support.
The move comes after a massive short squeeze in Bitcoin and a macro shift last week that led to a rally of more than 20% in three days, the largest such rally since 2023. Yields briefly fell after the Treasury announced it would double its purchases of long-term government bonds, and demand for risk assets such as Bitcoin and rare assets such as gold recovered.
Demand from institutional investors has also returned, with the Spot Bitcoin ETF recording $1.92 billion in inflows last week, the largest weekly inflow since October, when Bitcoin reached its cycle peak. Meanwhile, more than $4 billion of bearish crypto positions were liquidated as prices rose.
Bridgewater Associates founder Ray Dalio warned that major countries could face a debt crisis within the next few years and encouraged investors to hold “a little bit” of Bitcoin, reinforcing the crypto movement.
