Crypto markets are making a big comeback as political uncertainty grips Italy and Europe. At the time of writing, a number of major cryptos were sporting big gains, including ethereum and bitcoin cash.

Bitcoin, the largest cryptocurrency by market capitalization, was trading up 4.8% at $7,446 a coin, according to Markets Insider data. Bitcoin rallied close to $10,000 soon after the close of Tax Season in the US, but is down by more than $2,000 since the beginning of May.

Market observers noted that Tuesday’s rally was occurring at the same time as political uncertainty in Italy gripped financial markets. “Bitcoin finally catches a bid after Italian 2-year yield spikes 155bps – Italy’s new 5 Star party threatens exit from Eurozone which has once again put the Idea of a Euro breakup in the forefront of investors minds,” John Spallanzani, a portfolio manager at Miller Value Partners, said in an email to Business Insider.

A deepening political crisis in the eurozone’s third-largest economy, Italy, has been wreaking havoc in global markets Tuesday amid fears of renewed turmoil in the single-currency area. On Sunday, Italy’s president Sergio Mattarella declined to accept the nomination of euroskeptic Paolo Savona as economic minister.

A national election in March resulted in a hung parliament and Italy has been running without a ruling government. Outside of crypto, gold – which is often considered a safe-haven asset – rallied earlier Tuesday, but has given up those gains. Read more from…

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