Monday saw Bitcoin and crypto-linked equities extend last week's gains, with the flagship digital currency breaking out of its prior trading range as investor worries over inflation and fiscal deficits intensified.

Bitcoin climbed more than 1% during the session, nearing the $80,000 mark for the first time since May, while Ethereum advanced 2% to roughly $2,470, closing in on its highest level since January. Crypto-exposed stocks followed the blue-chip digital assets higher, with Strive jumping 8% and Strategy (MSTR.US) adding 2%, while Ethereum holders Bitmine and Sharplink rose 5% and 4%, respectively.

Market watchers are now questioning whether this rally signals a turning point for Bitcoin, which has been stuck in a sluggish phase since October. The current move coincides with a seasonally strong window. BTIG analyst Jonathan Klinksy noted in a Monday report that Bitcoin displayed a similar pattern in January 2023, surging roughly 20% in three days and breaking above its downtrend line, only to fade and find support at the 200-day moving average before stabilizing.

This latest leg higher was triggered by a macro shift last week. The U.S. Treasury's announcement of plans to double its purchases of long-term bonds briefly pushed yields lower, boosting demand for risk assets like Bitcoin as well as scarce assets such as gold, while simultaneously squeezing short sellers. The resulting three-day advance of more than 20% marks the largest since 2023.

Institutional demand has returned in tandem. Spot Bitcoin ETFs recorded $1.92 billion in net inflows last week, the biggest weekly total since October, when Bitcoin last hit its cycle peak. Meanwhile, over $4 billion in crypto short positions were liquidated as prices climbed. Adding further tailwind, Bridgewater founder Ray Dalio warned that major economies could face debt crises in coming years and advised investors to hold a "modest allocation" to Bitcoin, a statement that lent additional support to the crypto rally.