Bitcoin Roars Back with 20% Surge as Inflation Fears Drive Macro Shift

The crypto market is experiencing a broad rebound, led by Bitcoin's surge of over 20% in three days. This marks its largest gain since 2023. Bitcoin broke out of its previous trading range as investor anxiety over inflation and fiscal deficits intensified.

Ethereum also saw a price increase, rising 2% to approximately $2,470, nearing a phase high not seen since January. Cryptocurrency-related stocks followed the rise in blue-chip crypto assets, with Strive surging 8% and Strategy gaining 2%.

The rebound is attributed to a macroeconomic shift last week, influenced by the U.S. Treasury's announcement that it would double its holdings of long-term government bonds. This caused yields to briefly decline, boosting allocation demand for risk assets like Bitcoin and scarce assets like gold.