SINGAPORE: Bitcoin surged above $80,000 on Tuesday, reaching its highest level in more than three months as a weaker US dollar and developments in the US bond market helped revive momentum across the cryptocurrency sector.
Bitcoin climbed to $81,237.94 earlier in Asian trading, its highest level since mid-May. It was later trading at around $80,323.24, extending a powerful August rally.
The cryptocurrency has gained around 28% so far this month, putting it on track for its strongest monthly performance since November 2024.
The latest Bitcoin price surge follows a sharp improvement in sentiment across digital-asset markets.
Bitcoin has risen about 16% since last week, when US President Donald Trump urged Congress to approve legislation aimed at providing clearer regulatory definitions for the rapidly expanding cryptocurrency industry.
Investors have also been encouraged by developments in US financial markets, particularly moves by Treasury Secretary Scott Bessent aimed at easing pressure in the bond market.
The combination of a weaker dollar, expectations for greater cryptocurrency regulatory clarity and renewed interest in alternative assets has helped strengthen demand for Bitcoin.
US Treasury Moves Support Bitcoin
The US Treasury recently announced plans to buy back more long-dated government bonds in an effort to limit increases in longer-term yields.
The move has contributed to weakness in the US dollar as investors reassessed the outlook for US financial markets.
Tim Sun, senior researcher at HashKey Group, said Bessent’s messaging had strengthened expectations that US policymakers could have a lower tolerance for a further rise in long-term Treasury yields, particularly ahead of the midterm elections.
According to Sun, such an environment could provide a supportive backdrop for assets such as Bitcoin and gold.
Gold has also benefited from the dollar’s weakness, reaching a three-month high.
A weaker US dollar can support alternative assets because investors often look for stores of value when confidence in traditional financial instruments or currencies weakens.
Bitcoin has increasingly attracted interest as part of what analysts describe as the “debasement trade” — a strategy in which investors seek exposure to physical and digital assets amid concerns about currency purchasing power and government intervention in financial markets.
Geoff Kendrick, global head of digital assets research at Standard Chartered, said the Treasury’s bond-buyback plans represented the type of policy development that could be particularly supportive for Bitcoin.
He argued that Bitcoin was created in part to offer investors an alternative to traditional financial systems and monetary intervention.
Investors Watch $95,000-$100,000 Target
The recent rally has also prompted analysts to reassess Bitcoin’s potential next moves.
Tony Sycamore, a market analyst at IG, said renewed concerns about currency debasement had encouraged investors to move into both physical and digital assets.
He suggested that a sustained move above recent resistance could open the way toward $95,000 to $100,000.
However, Bitcoin remains highly sensitive to changes in interest-rate expectations, the US dollar, Treasury yields and broader investor risk appetite.
The latest Bitcoin price surge marks a significant recovery for the cryptocurrency market after a period of uncertainty.
Investors are now watching US policy closely, particularly developments involving cryptocurrency regulation, Treasury market operations and monetary conditions.
If the dollar remains under pressure and investors continue to seek alternative assets, Bitcoin could maintain its upward momentum. However, renewed strength in the dollar or a sharp rise in bond yields could quickly change market sentiment.
For now, Bitcoin’s move above $80,000 represents a major milestone for the cryptocurrency and puts the market firmly back in focus as traders assess whether the rally can extend toward the psychologically important $100,000 level.
