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

Business Recorder reported that bitcoin pushed above $80,000 on Tuesday, touching $81,237.94 in Asian trading, its strongest level since mid-May. The rise took the leading cryptocurrency to a peak not seen in more than three months, and the report linked the move to a softer US dollar. So far in August, bitcoin is up 28%, putting it on track for the largest monthly rise since November 2024. Bitcoin has gained 16% since US President Donald Trump urged Congress last week to pass legislation setting clearer rules for the crypto industry.

The US Treasury's plan to buy back more long-dated bonds, aimed at limiting rises in long-end yields, gave digital assets a further lift and weighed on the dollar. Standard Chartered's Geoff Kendrick called the announcement exactly the kind of move bitcoin favours, while HashKey Group's Tim Sun said US policymakers appear to have less tolerance for higher long-end yields through the midterm elections. Gold also climbed to a three-month high as the dollar weakened.

The report also explained the so-called debasement trade, in which strain moves out of bonds and into currencies when authorities hold down long-term yields. IG market analyst Tony Sycamore said the Treasury announcement pushed buyers toward physical and digital assets, with debasement fears resurfacing.