Bitcoin surges 22% in a week, climbs to nearly $78K as US Treasury bond-buying plan boosts sentiment

Bitcoin rose nearly 22% over the past week, trading near the $78,000 mark on Monday, as the US Treasury’s bond-buying plan boosted market sentiment. The cryptocurrency was last trading at $76,896.

Over the past 24 hours, Bitcoin and Ethereum gained 0.90% and 1.37%, respectively. Among major altcoins, BNB, Solana, Tron and Cardano rose by up to 0.90%, while XRP, Hyperliquid and Dogecoin advanced by up to 1.96%.

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CoinSwitch Markets Desk said the key catalyst was 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.

The gains were further supported by short covering, improving liquidity expectations, regulatory optimism and strength across ETH, SOL and XRP, CoinSwitch Markets Desk said.

Global crypto market capitalisation rose 1.6% to $2.62 trillion, according to CoinMarketCap. The crypto Fear and Greed Index surged to 78, indicating “greed” among investors, CoinDCX Research said.

Avinash Shekhar, Co-Founder & CEO of Pi42, said institutional participation, ETF activity and expectations of greater regulatory clarity in the US continue to support the market. However, after the sharp rally, technical indicators across major assets are showing stretched conditions, which could lead to some consolidation before the next directional move.

Investors should remain disciplined rather than chase prices after a strong rally. Staggered entries, selective profit-booking and careful position sizing can help navigate periods of heightened volatility, Shekhar said.

Over the past week, Ethereum rose 29.11%. Among major altcoins, BNB, XRP, Solana, Tron, Hyperliquid, Dogecoin and Cardano rallied by up to 45.74%.

Nischal Shetty, Founder of WazirX, said crypto markets are entering a macro-sensitive phase, with central-bank communication and long-term bond yields likely to determine the near-term direction. Based on current prices and nearby psychological levels, immediate support lies around 76,000-76,500.

The overall price action signals a cautious market, with investors limiting risk exposure and maintaining a more defensive stance, Shetty added.

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What other analysts said:

Vikram Subburaj, CEO, Giottus: The market is consolidating after last week’s sharp breakout rather than extending the rally immediately. Investors should avoid chasing the surge. Staggered entries and disciplined position sizing remain preferable, with 75,500-76,000 the immediate zone to watch for signs that Bitcoin can sustain its new range.

Riya Sehgal, Research Analyst, Delta Exchange: The crypto rally has entered a consolidation phase after last week’s vertical breakout. Overall, the trend remains bullish, but the market is now digesting a very fast move. The next major signal will be whether BTC can decisively break and hold above the 80,000-82,000 region while institutional demand continues to absorb profit-taking from existing holders.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)