The macro shift has triggered a comprehensive rebound in cryptocurrency assets, with Bitcoin soaring over 20% in three days, marking the largest increase of 2023.

On Monday, Bitcoin and cryptocurrency-related stocks continued last weeks upward momentum. As concerns over inflation and fiscal deficits intensified among investors, the flagship cryptocurrency broke out of its previous trading range, with prices continuing to rise. Bitcoin's price rose over 1% on the day, approaching the $80,000 mark, reaching this level for the first time since May; Ethereum climbed 2% to about $2,470, nearing a peak not seen since January. Cryptocurrency-related stocks followed the upward trend of blue-chip crypto assets. Strive soared 8%, and Strategy (MSTR.US) rose 2%; Bitmine and Sharplink, which hold Ethereum assets, increased by 5% and 4% respectively. The market is watching to see if this rebound marks a turning point for Bitcoins trajectory. Since October last year, Bitcoin prices have remained sluggish, while we are currently in a traditionally strong seasonal window. BTIG analyst Jonathan Krinsky noted in a report on Monday that Bitcoin experienced a similar pattern in January 2023soaring approximately 20% over three days and breaking through a downward trend line, but the subsequent rally fizzled out, only finding support at the 200-day moving average. This round of market activity began with a shift in macroeconomic factors last week. Following the U.S. Treasury's announcement of plans to double its long-term Treasury bond purchases, yields briefly declined, boosting the demand for risk assets like Bitcoin and scarce assets like gold, while also triggering a short-squeeze in Bitcoin, leading to an accumulated rise of over 20% in three days, marking the largest increase since the start of 2023. Institutional demand is also returning. Last week, net inflows into spot Bitcoin ETFs reached $1.92 billion, the largest single-week inflow since October of last year (when Bitcoin hit its cyclical peak). Additionally, alongside the price increase, over $4 billion in cryptocurrency short positions were liquidated. Ray Dalio, founder of Bridgewater Associates, warned that major economies may face a debt crisis in the coming years and suggested that investors should moderately allocate to Bitcoin, a statement that also provided additional support for the rally in crypto assets.