Bitcoin crosses $80,000 for first time since mid-May driven by weaker dollar, gains 28% in August
Bitcoin crossed $80,000 for the first time since mid-May on Tuesday, extending its recent rally as a weaker US dollar and expectations of a more supportive policy environment boosted demand for cryptocurrencies.The world’s largest cryptocurrency climbed as high as $81,237.94 in Asian trading, its strongest level since mid-May. It was last trading at $80,323.24.Bitcoin has gained about 16 per cent since US President Donald Trump last week urged Congress to pass legislation establishing clearer rules for the cryptocurrency industry. The rally has pushed its August gains to around 28%, putting it on course for its biggest monthly increase since November 2024.The latest advance came as investors reacted to moves by US Treasury Secretary Scott Bessent aimed at easing pressure in the bond market. The Treasury last week announced plans to buy back more long-dated US government bonds, a move intended to limit further increases in long-term yields.The announcement weighed on the dollar and helped drive investors towards alternative assets, including bitcoin and gold. Gold also climbed to a three-month high.Tim Sun, senior researcher at HashKey Group, said Bessent’s messaging had strengthened expectations that US policymakers may have less tolerance for a further rise in long-term yields, at least through the midterm elections. “That would create a relatively supportive macro backdrop for assets such as bitcoin and gold,” Sun said, as quoted by Reuters.Geoff Kendrick, global head of digital assets research at Standard Chartered, said the Treasury’s move was “exactly the type of thing bitcoin loves”, arguing that the cryptocurrency was created partly as a way for investors to avoid such policy intervention.The developments have also revived the so-called “debasement trade”, in which concerns over efforts to contain bond yields shift pressure towards the currency and drive demand for physical and digital assets.“This (Treasury announcement) prompted buyers to scramble into physical and digital assets as debasement trade fears re-emerged,” said Tony Sycamore, market analyst at IG.He added that a sustained break above current levels could pave the way for bitcoin to reach $95,000-$100,000.
