Bitcoin rises above $80,000 as soft dollar, debasement fears boost momentum

Bitcoin climbed above $80,000 on Tuesday, reaching its strongest level in more than three months, according to Dawn. The rally was fuelled by a weaker US dollar, which followed steps by Treasury Secretary Scott Bessent to steady the bond market, and by renewed interest in crypto assets after President Donald Trump urged Congress last week to pass legislation defining the sector more clearly.

Bitcoin was quoted at $80,323.24 during Asian trading, after touching $81,237.94 earlier, its highest level since mid-May. The cryptocurrency is up 28 per cent in August so far, on course for its largest monthly rise since November 2024. Since Trump's call for legislation, it has risen 16 per cent.

Commentators linked the move to the debasement trade, under which Treasury bond buybacks are seen pushing pressure from the bond market into currencies and prompting buyers toward physical and digital assets. Tim Sun of HashKey Group said Bessent's remarks suggested US policymakers may be less willing to tolerate further rises in long-dated yields until the midterm elections. Gold also climbed to a three-month high as the dollar weakened.