Bitcoin climbed to its highest level in more than three months as a weaker US dollar and concerns over currency debasement strengthened demand for digital assets.
Bitcoin climbed above $80,000 on Tuesday, reaching its highest level in more than three months as weakness in the US dollar and growing concerns about currency debasement boosted demand for digital assets.
The world’s largest cryptocurrency reached an intraday high of about $81,238, its strongest level since mid-May. It later traded near $80,323 during Asian trading hours.
Bitcoin has staged a strong recovery in August, gaining about 28% this month and putting it on track for its biggest monthly increase since November 2024.
The latest rally has also been supported by expectations of clearer cryptocurrency regulations in the United States. President Donald Trump recently urged Congress to approve legislation aimed at establishing clearer rules and definitions for the expanding digital asset industry.
Bitcoin has gained roughly 16% since Trump’s remarks, adding to its recent momentum.
Market sentiment has also been influenced by steps announced by the US Treasury. Treasury Secretary Scott Bessent outlined plans to buy back some longer-dated government bonds, a move aimed at managing pressure on long-term borrowing costs and contributing to renewed weakness in the dollar.
A softer dollar generally makes assets such as bitcoin and gold more attractive to investors.
Analysts said the Treasury’s approach has increased expectations that US policymakers may be reluctant to allow long-term bond yields to rise sharply, particularly ahead of the midterm elections.
The environment has provided greater support for alternative assets. Gold has also benefited from the weaker dollar, climbing to a three-month high.
The developments have revived discussion around the so-called “debasement trade,” which reflects investor concerns that efforts to manage bond-market pressures could eventually increase pressure on the currency.
Some analysts believe investors are consequently turning toward physical and digital assets as potential hedges against currency weakness.
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