Bitcoin Surges Near $80,000 as Crypto Markets Record Biggest 3‑Day Rally Since 2023

Bitcoin kicked off the week with a $80,000‑ish price, the highest level seen since May, sparking a three‑day rally not witnessed since 2023.

A Three‑Day Surge That Echoes the 2023 Breakout

Bitcoin and leading crypto equities jumped 2% on Monday, while Ether rose to $2,500, its highest since January. The move ends a prolonged slump that began in October and marks the first sizeable price swing in months.

Institutional Money Flows Back Into Crypto

■Spot Bitcoin ETFs logged $1.92 billion of net inflows last week – the largest weekly haul since the October cycle peak.

■More than $4 billion in short crypto positions were liquidated as prices climbed.

■Ray Dalio, founder of Bridgewater Associates, warned of looming sovereign debt stress and advised investors to hold “a bit” of Bitcoin as a hedge.

Treasury Policy Fuels a Liquidity Surge

The U.S. Treasury’s decision to double purchases of longer‑dated government bonds nudged yields lower, briefly reviving demand for risk assets. That policy shift sparked a 20% three‑day surge in Bitcoin, the biggest short‑squeeze since 2023.

Positioning Shifts and Liquidity Outflows

■Strategy and Strive stocks climbed 2% and 4%, respectively.

■Ether‑linked securities Bitmine and Sharplink posted gains of 3% and 2%.

■Bitcoin’s price is now testing the 200‑day moving average, a level that previously acted as support after the January 2023 rally.

Market participants should weigh whether this rally reflects a fleeting liquidity shock or the start of a broader risk‑on rotation. The durability of Treasury bond buying and evolving inflation expectations will be decisive for Bitcoin’s ability to settle into a higher trading range. Short‑term volatility may prompt portfolio managers to integrate crypto hedges within diversified risk‑adjusted strategies.