Bitcoin Nears $80,000, Ethereum Tops $2,500 as ETF Inflows and Short Covering Fuel Crypto Rally

Bitcoin extended last week's rebound on Monday, climbing toward $80,000 and marking its highest level since May, according to CoinDesk. Ethereum rose to around $2,500, its strongest showing since January, and crypto-related equities also moved higher. Bitcoin was up about 2% on the day, trading near $80,000, while Ethereum gained roughly 2%. Shares of publicly listed firms with crypto exposure broadly advanced, with Strategy, Strive, and Ethereum treasury-linked names Bitmine and Sharplink among those posting gains. The move followed Bitcoin's break above its prior trading range. Investors have increasingly focused on inflation and fiscal-deficit concerns, prompting some reallocation into scarce assets such as Bitcoin and gold. Fund flows have also improved: spot Bitcoin ETFs recorded net inflows of $1.92 billion last week, the largest weekly intake since October last year, when Bitcoin hit a cycle high. The rally was amplified by aggressive short liquidations. Reports show more than $4 billion in bearish crypto positions were liquidated, adding to the near-term upside pressure. Bitcoin has risen more than 20% over the past three days. Last week's macro developments provided the immediate spark. After the U.S. Treasury said it would double its purchases of long-term Treasury bonds, yields briefly fell and risk appetite picked up, benefiting both Bitcoin and gold. CNBC said the more than 20% three-day jump is Bitcoin's largest since 2023. BTIG analyst Jonathan Krinsky pointed to a similar episode in January 2023, when Bitcoin surged about 20% over three days, broke a downtrend, then saw a temporary pause in momentum. Markets are now watching whether the latest breakout can mark a turning point after months of pressure; Bitcoin has been constrained since last October. With a seasonally stronger period approaching, investors remain focused on fund flows and the path of interest rates.