This rally has three reasons coming to light.

First, policy dividends are still fermenting.

After the Trump administration took office, life got better for the crypto community. The White House crypto summit just wrapped up, and the executive order for strategic Bitcoin reserves has been signed, with regulatory frameworks becoming increasingly clear. Institutional funds are now confident to enter the market — spot Bitcoin ETFs saw net inflows across all five trading days last week, totaling $760 million; Ethereum ETF also saw $160 million inflows.

Second, the macro environment suddenly warmed up.

Over the weekend, big news broke — the Strait of Hormuz had limited reopening. Two tankers carrying liquefied petroleum gas successfully passed through the strait, and Iran's foreign minister also eased up, saying the strait is closed only to "enemies." Oil prices responded by falling, with WTI dropping below $100, and the dollar index fell 0.3%.

What does this mean for cryptocurrencies? When oil prices drop, inflation expectations fall, and the Federal Reserve has more room to cut rates. When the dollar weakens, risk assets rise accordingly. Morgan Stanley analysts said that the relief in oil prices and the weakening of the dollar represent the macro combination that risk assets have needed most since the war began.

Third, technicals are cooperating too.

Bitcoin rallied from the low of 65,600 dollars all the way up, with seven consecutive daily closes in green, supported by both the 5-day and 10-day moving averages. The 72,000 to 71,500 zone is a key support level — as long as it doesn't break, the trend remains intact. $BTC ‌$ETH ‌