Bitcoin Surges 22% as US Treasury Plan Boosts Market Sentiment

Bitcoin's price surged nearly 22% over the past week, reaching $76,896 on Monday. The cryptocurrency's gain was largely attributed to the US Treasury's plan to at least double purchases of long-term government bonds.

The move helped ease pressure in the bond market and weakened the dollar, reviving the 'debasement trade' where investors turn to scarce assets such as Bitcoin and gold as a hedge against currency weakness.

Short covering, improving liquidity expectations, regulatory optimism, and strength across Ethereum (ETH), SOL, and XRP also contributed to the gains.

Avinash Shekhar, Co-Founder & CEO of Pi42, cautioned that technical indicators are showing stretched conditions, which could lead to some consolidation before the next directional move.