Bitcoin and crypto stocks extended their rally to start the week after the flagship cryptocurrency broke out of its trading range as investor concern over inflation and the fiscal deficit grew.

The price of bitcoin was higher by 2% on Monday, trading just under $80,000 at levels not seen since May. Ether rose 2% to about $2,500, trading at its highest level since January.

Crypto treasury stocks followed the blue-chip crypto assets higher. Strategy and Strive climbed 2% and 4%, respectively, while ETH treasury names Bitmine and Sharplink gained 3% and 2%, respectively.

Investors are wondering if the rally could mark a turning point for bitcoin, whose price has been stuck in a prolonged slump since October, ahead of a seasonally bullish period for the coin.

BTIG’s Jonathan Krinsky pointed out in a Monday note that bitcoin did something similar in January 2023, also surging about 20% in three days and breaking above its downtrend. Then, however, the rally faded and bitcoin pulled back to its 200-day moving average, where it found support.

The move came after a macro shift last week that led to a massive short squeeze in bitcoin and a more than 20% gain over three days — the largest such rally since 2023. After the Treasury said it would double its purchases of longer-dated government bonds, yields briefly pushed lower, helping revive demand for risk assets like bitcoin and scarce assets like gold.

Demand from institutions also returned, with spot bitcoin ETFs posting $1.92 billion in inflows last week—their largest weekly inflow since October, when bitcoin reached its cycle peak. Meanwhile, more than $4 billion in bearish crypto positions were liquidated as prices rose.

Bridgewater Associates founder Ray Dalio warned that major economies could face a debt crisis within the next several years and recommended investors hold “a bit” of bitcoin, reinforcing the crypto asset’s move.