Bitcoin climbed above $80,000 on Tuesday, reaching its highest level in more than three months as a weaker US dollar and renewed hopes for clearer crypto rules lifted demand.
The world’s largest cryptocurrency touched $81,237.94 in Asian trading, its highest level since mid-May. It later eased to around $80,323.24.
Bitcoin has gained about 16 percent since US President Donald Trump last week urged Congress to pass legislation that would provide clearer rules for the cryptocurrency industry.
The latest rally has pushed bitcoin up about 28 percent in August, putting it on track for its strongest monthly performance since November 2024.
A softer dollar has also helped lift demand for bitcoin and other assets seen as a hedge against currency weakness.
The move gained momentum after US Treasury Secretary Scott Bessent outlined plans to buy back longer-term government bonds. The Treasury said the move would help manage rising yields, but investors saw it as another sign that policymakers were concerned about pressure in the bond market.
The shift has fuelled what analysts call the “debasement trade”, in which investors move into assets such as gold and bitcoin when they fear currencies may lose value.
“This prompted buyers to scramble into physical and digital assets as debasement trade fears re-emerged,” said Tony Sycamore, a market analyst at IG.
Gold has also benefited from the weaker dollar, rising to a three-month high.
Tim Sun, senior researcher at HashKey Group, said the Treasury’s approach had strengthened expectations that US policymakers would be less willing to tolerate a further rise in long-term bond yields.
That could create a favourable environment for bitcoin and gold, he said.
Geoff Kendrick, global head of digital assets research at Standard Chartered, said the Treasury’s move was particularly positive for bitcoin.
Analysts now see further gains as possible if bitcoin can hold above the $80,000 mark. A sustained break could open the way towards $95,000 to $100,000, according to Sycamore.
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