Crypto Markets Rally as Bitcoin Hits $79,500 and Ethereum Surges Past $2,000
A recent rally in Bitcoin and Ethereum has sparked speculation that the crypto bear market may be over. Bitcoin's price surged past $79,500, marking a 20% increase, while Ethereum rose by more than 25%. This breakout move has analysts convinced that a regime change putting the bull market back in play has started.
According to Helios Analytics founder Jamie Coutts, 'the magnitude of the move' may mark a paradigm shift for the crypto market. He noted that this week's 2-day move is the fifth-largest since 2018 and doesn't read as a normal countertrend rally.
The rally has been attributed in part to increased institutional investment and a signal from the US Treasury, which announced it would step in to double its buybacks of long-dated debt. This move was seen as a form of yield curve control (YCC), with 1971 Capital founder Brian Russ saying 'the government is buying back its own debt'.
Other experts, such as Hyblock CEO Shubh Varma, believe that investors will eventually realize the erosion of USD buying power and choose to protect themselves by investing in assets pegged against it or digital currencies. The SEC, White House, and CFTC have also moved forward on crypto regulation, with the CLARITY Act aiming to provide clarity for crypto businesses.