Bitcoin Breaks Above $80,000 as Softer Dollar Revives Crypto Momentum
Bitcoin reaches its highest level since May as expectations around US policy and Treasury bond-buyback plans fuel renewed demand for digital assets.
Bitcoin rises above $80,000 as renewed demand drives the cryptocurrency higher.
NEW YORK: Bitcoin climbed above $80,000 on Tuesday, reaching its highest level in more than three months as a weaker US dollar and shifting expectations around US economic policy revived demand for cryptocurrencies.
The world’s largest cryptocurrency rose to $81,237.94 during Asian trading before easing to $80,323.24. The move took Bitcoin to its highest level since mid-May.
Bitcoin has gained about 28% so far in August. The cryptocurrency is now heading for its strongest monthly performance since November 2024.
US Policy Boosts Crypto Sentiment
Bitcoin has also gained momentum following US President Donald Trump’s call for Congress to approve legislation that would establish clearer rules for the cryptocurrency industry.
Since Trump’s call last week, Bitcoin has risen around 16%.
Market participants have also linked the recent rally to developments in the US Treasury market. Treasury Secretary Scott Bessent has sought to ease pressure in the bond market, while the Treasury announced plans to buy back more long-term government bonds.
The plans could help limit further increases in long-term bond yields. However, the move has also placed pressure on the US dollar as investors reassess the outlook for US financial markets.
Dollar Weakness Supports Digital Assets
Tim Sun, senior researcher at HashKey Group, said Bessent’s messaging has strengthened expectations that US policymakers may have limited tolerance for another sharp rise in long-term bond yields, at least through the midterm elections.
Such an environment could provide support for assets including Bitcoin and gold, he said.
Gold has also benefited from the weaker dollar and reached a three-month high.
Geoff Kendrick, global head of digital assets research at Standard Chartered, said the Treasury’s bond-buyback plans represented the type of policy intervention that could favour Bitcoin.
The developments have revived discussion around the so-called “debasement trade”. Investors following this strategy seek protection in physical and digital assets when concerns grow over currency purchasing power and government intervention in financial markets.
Bitcoin Eyes $100,000
Tony Sycamore, market analyst at IG, said renewed concerns over currency debasement had encouraged investors to move into physical and digital assets.
Market analysts are now watching Bitcoin’s next major resistance levels. A sustained move above recent highs could open the way towards $95,000 and potentially $100,000, according to Sycamore.
The latest rally marks a sharp turnaround for Bitcoin after months of volatility. Investors will now focus on US monetary policy, Treasury market developments and regulatory decisions for further clues about the cryptocurrency’s next move.
