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, according to Business-Today. The world's largest cryptocurrency climbed as high as $81,237.94 in Asian trading, its strongest level since mid-May, and was last trading at $80,323.24.
According to the report, bitcoin has gained about 16% since US President Donald Trump last week urged Congress to pass legislation establishing clearer rules for the cryptocurrency industry. That rally has pushed bitcoin's August gains to around 28%, putting it on course for its biggest monthly increase since November 2024.
Treasury buyback plan weighs on dollar
Business-Today reported that 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, the report said. Gold also climbed to a three-month high.
| Asset / Indicator | Level / Move | Context |
|---|---|---|
| Bitcoin intraday high | $81,237.94 | Strongest level since mid-May |
| Bitcoin last trade | $80,323.24 | Asian trading |
| Bitcoin gain since Trump's call | +16% | President urged clearer crypto rules |
| Bitcoin August gain | +28% | Biggest monthly increase since Nov 2024 |
| Gold | Three-month high | Weaker dollar, Treasury buyback plan |
'Debasement trade' revived
The developments 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, according to Business-Today.
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, as quoted by Reuters in the report.
"That would create a relatively supportive macro backdrop for assets such as bitcoin and gold," Sun said, as quoted by Reuters in Business-Today.
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 report said.
Tony Sycamore, market analyst at IG, said: "This (Treasury announcement) prompted buyers to scramble into physical and digital assets as debasement trade fears re-emerged." He added that a sustained break above current levels could pave the way for bitcoin to reach $95,000-$100,000, according to Business-Today.
What this means for finance executives
For CFOs, treasury directors and trade finance professionals tracking USD-denominated exposures, the report's account of the Treasury buyback plan, the dollar's decline and the revival of the 'debasement trade' links bond-market intervention with currency-driven asset demand. According to Business-Today, the Treasury's announcement weighed on the dollar and helped drive investors toward alternative assets including bitcoin and gold.
The report also highlighted the market impact of regulatory-policy signals: bitcoin gained about 16% after President Trump urged Congress to pass clearer rules for the cryptocurrency industry. The August performance — around 28%, the biggest monthly gain since November 2024 — shows how quickly valuation shifts can occur when policy expectations change.
With gold at a three-month high and bitcoin up 28% in August, the connection between bond-market intervention and currency-driven asset demand is visible in the market data cited by Business-Today.
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