Crypto extends gains after biggest 3-day rally since 2023

• Bitcoin rose 2% to just under $80,000 (highest since May) while Ethereum climbed 2% to $2,500 (highest since January); crypto treasury stocks like Strategy and Strive also gained
• Spot bitcoin ETFs posted $1.92 billion in inflows last week, the largest weekly inflow since October, while over $4 billion in bearish crypto positions were liquidated
• Ray Dalio warned of a potential debt crisis within several years and recommended investors hold 'a bit' of bitcoin, reinforcing the asset's recent momentum

Summary: Crypto Extends Gains After Biggest 3-Day Rally Since 2023

Key Market Movements:

Bitcoin extended its rally on Monday, rising 2% to trade just under $80,000—levels not seen since May. Ethereum gained 2% to approximately $2,500, reaching its highest point since January. The cryptocurrency market experienced its largest three-day rally since 2023, with bitcoin surging more than 20% over that period.

Related Equities:

Crypto treasury stocks followed the rally higher. Strategy and Strive climbed 2% and 4% respectively, while ETH treasury names gained 3% and 2%.

Market Catalysts:

The breakout followed a macro shift involving Treasury policy that briefly pushed yields lower, reviving demand for risk assets. Growing investor concerns over inflation and the fiscal deficit contributed to the move. The rally triggered a massive short squeeze, with over $4 billion in bearish crypto positions liquidated as prices rose.

Institutional Interest:

Spot bitcoin ETFs posted $1.92 billion in inflows last week—the largest weekly inflow since October, when bitcoin reached its cycle peak, signaling renewed institutional demand.

Market Context:

Bitcoin has been stuck in a prolonged slump since October, and investors are questioning whether this rally marks a turning point ahead of a seasonally bullish period. BTIG analyst Jonathan Krinsky noted bitcoin executed a similar pattern in January 2023, breaking above its downtrend before pulling back to its 200-day moving average.

Expert Commentary:

Bridgewater Associates founder Ray Dalio warned of potential debt crises in major economies within the next several years and recommended investors hold "a bit" of bitcoin, providing additional support for the cryptocurrency's momentum.