Bitcoin surged past $80,000 on Tuesday, reaching its highest level in over three months, as the U.S. dollar weakened following the Treasury’s announcement of a plan to repurchase longer-term bonds.
The world’s largest cryptocurrency briefly touched $81,237.94 during the session, according to market data. At 11:36 a.m. Brasília time, bitcoin traded 0.45% higher at 79,277.70 reais, reflecting a 16% gain since last week. The cryptocurrency has advanced 28% so far in August, on track for its strongest monthly increase since November 2024.
Analysts attributed the rally to a combination of dollar depreciation and rising concerns over currency debasement. The Treasury’s move to curb long-term bond yields through repurchases has revived speculation of a "debasement trade," where policy interventions shift pressure from bond markets to foreign exchange markets. Geoff Kendrick, global head of digital assets research at Standard Chartered, described the announcement as "exactly the kind of thing bitcoin loves," noting that the cryptocurrency was designed to offer an alternative amid such interventions.
Tony Sycamore, market analyst at IG, said a sustained break above $80,000 could pave the way for a move toward $95,000 to $100,000. Meanwhile, Tim Sun, senior researcher at HashKey Group, highlighted a potential shift in policymakers’ tolerance for higher long-term yields until the U.S. midterm elections, creating a relatively favorable macroeconomic backdrop for assets like bitcoin and gold.
Gold prices also climbed to a three-month high, reinforcing the trend toward safe-haven assets. The developments follow last week’s request by U.S. President Donald Trump for Congress to approve legislation providing clearer definitions for the cryptocurrency sector, further supporting market sentiment.
The rally underscores bitcoin’s growing role as a hedge against policy-driven market distortions, with traders positioning for continued volatility amid evolving fiscal dynamics.
