Bitcoin Surges Past $80,000, Reaching Three-Month High

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Bitcoin surged past $80,000 on Tuesday, reaching its highest level since mid-May. The cryptocurrency was last at $80,323.24 in Asian hours, having earlier touched $81,237.94. This rise marks a more than three-month high for Bitcoin, which is up 28 percent so far in August, setting it for its biggest monthly gain since November 2024. The momentum in the crypto sector revived due to a soft US dollar, following moves by Treasury Secretary Scott Bessent to calm the bond market. The US Treasury last week unveiled plans to buy back more long-dated bonds to help cap gains in long-end yields, a move that led to the US dollar bearing the brunt of investor angst. The Treasury announced it would double the size of its repurchases of long-dated securities to at least $4 billion per round over the next quarter. Tim Sun, senior researcher at HashKey Group, stated that Bessent’s messaging reinforced the market’s view that US policymakers may have a lower tolerance for a further rise in long-end yields, at least through the midterm elections. Geoff Kendrick, global head of digital assets research at Standard Chartered, said the Treasury announcement is exactly the type of thing bitcoin loves. US President Donald Trump last week called on Congress to pass a bill that would bring clearer definitions to the growing cryptocurrency sector. Since then, Bitcoin has risen 16 percent. Gold has also benefited from the dollar weakness, rising to a three-month high. Ryan Lee, chief analyst at Bitget Research, noted that US spot Bitcoin ETFs recorded $517 million in net inflows on August 19, their strongest day since early May. Naeem Aslam, chief investment officer of Zaye Capital Markets, said the rally appears driven by improving liquidity expectations and a lower regulatory risk premium.

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