Bitcoin has risen 23.2 percent over the past seven days to above $78,000, while gold has also climbed and the dollar has weakened. The move gathered pace after the U.S. Treasury said it would increase its plan to buy long-term government bonds by at least two times. Analysts cited shifting institutional sentiment and a narrative of bitcoin as a digital hedge, though others said it was too early to read it as a collapse in dollar confidence.

An analysis said that if U.S. stocks enter a steep bear market, Federal Reserve market support could expand liquidity in cryptocurrency markets. Analysts cited the size of the U.S. stock market and political pressure to avoid a prolonged downturn. Eric Balchunas said the Fed could break with decades of precedent and buy equity ETFs. Market participants said Fed intervention could include rate cuts and balance-sheet expansion, though high inflation could limit immediate action.