Bitcoin rises above US$80,000 as soft dollar, debasement fears boost momentum

Bitcoin surged past the US$80,000 mark, reaching a three-month peak, on Tuesday due to a weaker US dollar and Treasury Secretary Scott Bessent's efforts to stabilize the bond market. President Donald Trump previously urged Congress to pass legislation for clearer definitions of the cryptocurrency sector, which has led to a 16% increase in Bitcoin's value.

The cryptocurrency hit US$80,323.24 in Asian hours after peaking at US$81,237.94, the highest since mid-May. Bitcoin's value has climbed 28% in August, marking its largest monthly gain since November 2024.

The US Treasury's decision to repurchase long-dated bonds to curb long-end yields has bolstered cryptocurrency momentum, causing the US dollar to bear the brunt of investor concerns. Tim Sun, a senior researcher at HashKey Group, stated that Bessent's statements have reinforced the belief that policymakers may be less tolerant of further increases in long-end yields through the midterm elections, creating a more favorable environment for assets like Bitcoin and gold. Gold also benefited from the dollar's weakness, hitting a three-month high.

The Treasury's actions have reignited speculation about "debasement" in the market, as investors shift their focus from bonds to currencies to counteract potential inflation. This led to increased demand for physical and digital assets, with Tony Sycamore, a market analyst at IG, noting that a sustained break above the current level could propel Bitcoin's price to the US$95,000–US$100,000 range.