Bitcoin rises above $80,000 as a softer American currency and concerns over fiscal debasement spur buying in the crypto market, the report said Tuesday.
Dollar weakness and bond buybacks lift the cryptocurrency
The rise came after the Treasury announced a larger program of long‑dated bond repurchases, a step intended to temper yields that had been climbing. By buying back those securities, the agency reduced pressure on long‑term rates, which in turn pulled the greenback lower against a basket of peers.
Analysts note that a weaker greenback often benefits assets priced in dollars, and the digital asset in question responded with a sharp climb. At one point the price hit $81,237.94, the highest level since mid‑May, before settling around $80,323.24 in Asian trading.
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Market voices on the policy shift
Tim Sun, a senior researcher at HashKey Group, said the Treasury secretary’s messaging reinforced the view that policymakers may keep a tighter grip on long‑end yields through the upcoming election cycle. “That would create a relatively supportive macro backdrop for assets such as the cryptocurrency and gold,” he said.
Geoff Kendrick, global head of digital assets research at Standard Chartered, described the Treasury’s move as “exactly the type of thing the cryptocurrency loves,” noting that the asset was designed to offer investors a way to sidestep such interventions.
In August the digital asset is up about 28%, marking its biggest monthly gain since November 2024. It has risen roughly 16% since a former president called on lawmakers to clarify rules for the sector.
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The Treasury doubled its bond buyback budget from $2 billion to $4 billion, a change that helped push yields lower and the greenback weaker. Spot fund inflows topped $1 billion in early August, while short‑position liquidations hit record levels.
For investors, the combination of a softer dollar and a policy stance that seems to favor non‑sovereign stores of value may make the asset a more attractive hedge. Those holding the coin could see portfolio volatility lessen if the broader market continues to favor alternatives to fiat currency. At the same time, the recent rally may attract participants who are less familiar with the technology, potentially increasing demand for custodial services and educational resources.
Tony Sycamore, a market analyst at IG, said the Treasury announcement revived chatter about a “debasement trade,” where investors shift from bonds to physical and digital stores of value. “This prompted buyers to scramble into physical and digital assets as debasement trade fears re‑emerged,” he wrote, adding that a sustained break above current levels could open the door to a move toward $95,000–$100,000.
