Bitcoin demonstrated significant growth, surpassing the $80,000 mark on Tuesday, allowing it to reach above its three-month high. This surge is attributed to the weakening of the US dollar and renewed momentum in the crypto sector.
The cryptocurrency market became active after US Treasury Secretary Scott Bessent took strategic steps aimed at stabilizing the bond market. Bitcoin peaked at $81,237.94 in Asian time, then stabilized at $80,323.24, which is the highest level since mid-May.
The leading cryptocurrency increased by 16% since US President Donald Trump addressed Congress last week, calling for legislation that would provide clearer definitions for the growing digital asset sector. Furthermore, Bitcoin has grown by 28% in August, putting it on track for its most significant monthly gain since November 2024.
Cryptocurrencies received an additional boost after the US Treasury announced last week plans to buy back more long-term bonds. This strategy is intended to limit the yield of long-term bonds, causing the US dollar to bear the main burden of investor concern.
Tim Sun, Senior Research Fellow at HashKey Group, noted that Bessent's statements confirm the market's view that US policymakers maintain low tolerance for rising long-term yields during the period between midterm elections. This creates a favorable macroeconomic backdrop for alternative assets such as gold and Bitcoin, which have also reached a three-month high.
Jeff Kendrick, Global Head of Digital Asset Research at Standard Chartered, stated in his note that the Treasury's announcement is precisely the type of intervention Bitcoin was created to help investors avoid. This action intensified discussions about devaluation trading, where efforts to manage bond yields directly transfer financial pressure to the currency market.
Tony Sikamor, a market analyst at IG, pointed out that the Treasury's bond repurchase announcement prompted buyers to rush to acquire physical and digital assets as devaluation concerns resurfaced. He added that a sustained breakthrough above current resistance levels could open the door for Bitcoin to target a move towards $95,000 – $100,000.