Bitcoin rose above $80,000 to hit a more than three-month high as a soft U.S. dollar, in the wake of U.S. Treasury actions to calm the bond market, revived momentum in the cryptocurrency sector, according to Reuters reporting by Ankur Banerjee and Jiaxing Li. The world’s largest cryptocurrency reached $80,323.24 during Asian hours on Tuesday, having earlier touched $81,237.94, marking its highest level since mid-May.
Treasury Actions and Dollar Weakness
President Donald Trump, who called on Congress last week to pass a bill establishing clearer definitions for the growing cryptocurrency sector, according to Reuters. Since that call, bitcoin has risen 16%. Treasury unveiled plans to buy back more long-dated bonds to help cap gains in long-end yields, a move that placed the burden of investor angst onto the U.S. dollar.
Tim Sun, senior researcher at HashKey Group, told Reuters that Treasury Secretary Scott Bessent’s messaging reinforced the market’s view that U.S. policymakers may maintain a lower tolerance for a further rise in long-end yields through the midterm elections. That creates a supportive macro backdrop for assets such as bitcoin and gold, Sun noted. Gold similarly benefited from dollar weakness, climbing to a three-month high.
Market Sentiment and the Debasement Trade
The Treasury’s bond buyback announcement is exactly the type of intervention bitcoin was built to help investors avoid, according to Geoff Kendrick, global head of digital assets research at Standard Chartered, as reported by Reuters. The policy action stoked increased chatter surrounding the debasement trade, where measures to prevent long-end yields from reaching market-clearing levels shift pricing pressure from the bond market to the currency market.
“This prompted buyers to scramble into physical and digital assets as debasement trade fears re-emerged,” Tony Sycamore, a market analyst at IG, told Reuters. Sycamore added that a sustained break above current price levels would open the door for a move toward $95,000 to $100,000.
Bitcoin is up 28% so far in August, putting the digital asset on track for its largest monthly gain since November 2024, according to Reuters data.
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