Bitcoin crossed $80,000 for the first time since mid May, climbing as high as $81,237 as a weaker US dollar and improving policy expectations drove its August gains to 28%.
BTC$79,064.00+0.15%Bitcoin has crossed the $80,000 mark for the first time since mid May, extending a powerful August rally driven by a weaker US dollar and growing expectations of a more supportive policy environment for cryptocurrencies.
The world's largest cryptocurrency climbed as high as $81,237.94 on Tuesday before easing slightly to trade near $80,323. The latest move has pushed Bitcoin's gains for August to around 28%, putting the cryptocurrency on track for its strongest monthly performance since November 2024.
Bitcoin's latest surge builds on the sharp rally seen across the crypto market in recent days.
The cryptocurrency has gained roughly 16% since President Donald Trump urged Congress last week to pass legislation aimed at creating clearer rules for the crypto industry. That renewed policy optimism has added to improving demand across the digital asset market.
Bitcoin's return above $80,000 also follows the strong momentum covered in our recent report on Bitcoin hitting $80K as crypto short liquidations surged.
However, the latest move appears to have a broader macroeconomic driver as well, with developments in the US bond market adding further support to Bitcoin and other alternative assets.
Investors have been closely watching recent moves by US Treasury Secretary Scott Bessent aimed at easing pressure in the bond market.
Last week, the US Treasury announced plans to buy back more long-dated government bonds in an effort to limit further increases in long-term yields.
The announcement weighed on the US dollar and helped increase demand for alternative assets, including Bitcoin and gold. Gold also climbed to a three-month high as investors responded to the changing macro environment.
Tim Sun, senior researcher at HashKey Group, said the Treasury's messaging had strengthened expectations that US policymakers may be less willing to tolerate a further rise in long-term yields, at least through the midterm elections.
That could create a relatively supportive environment for assets such as Bitcoin and gold.
Geoff Kendrick, global head of digital assets research at Standard Chartered, described the Treasury's move as the kind of development that could benefit Bitcoin, particularly given its role as an alternative asset outside the traditional monetary system.
The latest Bitcoin rally has also brought renewed attention to the so called “debasement trade.”
The idea centers on investors moving toward physical and alternative assets when concerns grow that policy efforts to manage bond yields could place additional pressure on a country's currency.
With the dollar weakening following the Treasury announcement, buyers have increasingly turned toward assets such as gold and Bitcoin.
Market analyst Tony Sycamore of IG said renewed concerns around the debasement trade had encouraged buyers to move into both physical and digital assets.
For Bitcoin, the combination of a weaker dollar, supportive policy expectations and improving crypto market momentum has created one of its strongest rallies in months.
Bitcoin's move above $80,000 is an important psychological milestone, but the market will now be watching whether BTC can hold those levels.
The cryptocurrency has already gained about 28% in August, making this one of its strongest monthly performances in nearly two years. A sustained move above the current range could potentially open the path toward the $95,000 to $100,000 area, according to Sycamore's outlook.
The strength of Bitcoin's next move may depend on whether the dollar remains under pressure and whether the improving policy and macro backdrop continues to support risk assets.
For now, Bitcoin has reclaimed a level it had not seen since mid-May. After entering August with far lower prices, BTC's return above $80,000 highlights just how quickly sentiment has shifted across the crypto market.
Canaccord raised its MSTR stock price target to $175 from $130 while maintaining a Buy rating, citing Bitcoin’s recovery, Strategy’s stronger balance sheet and renewed BTC acquisition potential.
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