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

Bitcoin climbed above $80,000 on Tuesday, reaching a level not seen since mid-May and marking a three-month peak, according to The Express Tribune. The rally came as a weaker US dollar lifted demand for risk assets, a shift that followed steps by Treasury Secretary Scott Bessent to ease pressure on the bond market. Bitcoin was trading at $80,323.24 during Asian hours after an earlier high of $81,237.94.

Bitcoin has risen 16% since President Donald Trump last week urged Congress to pass legislation that would set clearer rules for the crypto sector. The largest cryptocurrency is up 28% so far in August and is on track for its largest monthly rise since November 2024.

Market participants linked the rally to the Treasury's plan to buy back longer-dated bonds, a step aimed at limiting rises in long-term yields that has shifted pressure from bonds toward currencies. Standard Chartered's Geoff Kendrick called the announcement exactly the sort of development bitcoin favours, while IG analyst Tony Sycamore said a sustained break above current levels could open the way to $95,000 to $100,000. Gold also benefited from dollar weakness and climbed to a three-month high.