Bitcoin surged past $80,000 on Tuesday, extending an eight-session winning streak as investors sought shelter from dollar weakness amid U.S. fiscal policy concerns.
The world’s largest cryptocurrency briefly touched an over three-month high of $81,300 before paring gains to trade at $78,644.8 by 09:29 ET, up 0.1% on the session. The move followed last week’s U.S. Treasury announcement that it would effectively double its bond buyback pace to curb rising yields, a step that analysts said heightened concerns over long-term dollar stability.
The Treasury’s plan sparked a shift in market focus from rising yields to potential dollar debasement, drawing capital toward assets perceived as hedges against fiscal uncertainty. Gold and cryptocurrencies benefited as the dollar index slipped, with Bitcoin’s rebound liquidating more than $457 million in short positions over the past 24 hours, according to Coinglass data.
Ether, the second-largest cryptocurrency, declined 1.2% to $2,463, while XRP fell 2.6%. Solana bucked the trend with a 2.3% gain. Smaller tokens such as Cardano and Dogecoin retreated 3% and 2.3%, respectively, and the meme coin $TRUMP dropped 7.5%.
Analysts at OCBC noted that the Treasury’s buyback strategy had reframed market expectations, shifting attention from yield dynamics to broader fiscal risks. "The intervention has shifted the narrative from higher yields to USD debasement—fuelling a weaker dollar, stronger gold and higher breakevens," they wrote in a note. "While QE comparisons are overdone, rising policy uncertainty and questions around Fed independence are weighing on the USD."
Bitcoin’s advance capped a nine-session stretch in which it rose in eight sessions, reflecting sustained appetite for non-sovereign assets amid evolving macroeconomic conditions.
