A high-altitude rally with thin air

Crypto is having a moment again. The total market value has re-crossed the $3 trillion mark for the first time since January, with Bitcoin doing the heavy lifting. Bitcoin surged nearly 8% on Monday, touching $87,381 – the highest since January – before retreating to $85,093 on Tuesday.

The run-up coincides with a friendlier macro backdrop. CoinGecko data indicate the market has added over $740 billion in value following the US Treasury’s announcement last month to increase buybacks of long-dated bonds. Still, caution flags are up. “If open interest and funding keep accelerating faster than spot demand, the risk of a leverage-driven pullback increases,” Ryan Lee, chief analyst at Bitget, said. “Macro…