Bitcoin surged above $80,000 for the first time in over three months, reaching an intraday peak of $81,237.94 during Asian trading hours before settling at $80,323.24. The move extends a sharp August rally, with the cryptocurrency up 28% this month and 16% since U.S. President Donald Trump urged Congress to pass legislation clarifying the regulatory framework for digital assets.
The gains coincide with a broad shift in global risk sentiment, driven by a weakening U.S. dollar and growing expectations of currency debasement. Analysts cited renewed focus on the so-called debasement trade, where investors seek alternatives to fiat currencies amid concerns over long-term inflation and fiscal policy. The momentum was reinforced by U.S. Treasury Secretary Scott Bessent’s recent comments, which signaled a willingness to intervene in bond markets to cap long-dated yields, redirecting investor attention toward assets perceived as hedges against currency erosion.
Gold also advanced to a three-month high, reflecting similar underlying pressures. The yellow metal’s rise underscored the cross-asset spillover effects of dollar softness and policy uncertainty.
Market strategists highlighted the structural appeal of bitcoin in this environment. Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered, noted in a recent research note that the Treasury’s bond-buyback plan aligns with bitcoin’s original design as a hedge against monetary intervention. "This is exactly the type of thing bitcoin loves," Kendrick wrote, emphasizing its role as a non-sovereign store of value.
Tim Sun, Senior Researcher at HashKey Group, pointed to Bessent’s messaging as a key catalyst, suggesting it reinforced perceptions that policymakers may tolerate higher inflation through the midterm elections. "This creates a relatively supportive macro backdrop for assets like bitcoin and gold," Sun said.
Tony Sycamore, Market Analyst at IG, attributed the renewed inflows to both physical and digital assets as the debasement trade resurfaced. He warned that a sustained break above current levels could open the door to a move toward $95,000 to $100,000.
The cryptocurrency’s ascent follows Trump’s call for clearer crypto regulations, which market participants view as a potential tailwind for institutional adoption and mainstream integration. While regulatory clarity remains a work in progress, the combination of policy signals and macroeconomic pressures has accelerated bitcoin’s upward trajectory.
