Bitcoin Leads Crypto Rebound on Macro Gains and Regulatory Optimism
Crypto markets have been experiencing a rebound in recent weeks, led by Bitcoin's sharp price increase. According to ETF Trends, Bitcoin has gained nearly 20% last week, reaching around $80,000. This rally is attributed to several factors, including improving macro conditions, short covering, renewed regulatory optimism, and stronger demand through U.S.-listed crypto ETFs.
The Treasury's announcement to double the size of its liquidity-support buybacks for longer-dated Treasuries has helped revive the so-called 'debasement trade'. This shift in policy has weighed on the dollar, causing it to fall nearly 1% over the week. Assets commonly viewed as alternatives to fiat currencies, such as gold and Bitcoin, have rallied.
The regulatory environment is also becoming more constructive for crypto markets. President Trump has expressed support for crypto market structure legislation, calling on Congress to pass a 'fair version' of the CLARITY Act. The SEC and CFTC have continued to move toward more crypto-friendly rules and frameworks under their existing authority.
Spot Bitcoin ETFs saw inflows of around $2 billion last week, their strongest week in 10 months. This suggests investor interest may be returning after months of weakness. However, one strong week does not necessarily signal a true reversal, and spot Bitcoin ETFs remain in net outflows for the year.