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Bitcoin climbed above $80,000 on Tuesday to its highest level in more than three months, as weakness in the US dollar and moves by the US Treasury to ease pressure in the bond market renewed appetite for cryptocurrencies.
According to Reuters, the world’s largest cryptocurrency was trading at $80,323.24 in Asian trading hours after reaching $81,237.94 earlier in the session, its highest level since mid-May.
Bitcoin has gained about 16% since US President Donald Trump last week urged Congress to pass legislation providing clearer regulatory definitions for the cryptocurrency industry.
The latest rally has lifted bitcoin’s August gain to about 28%, putting it on track for its strongest monthly performance since November 2024.
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What they are saying
The renewed strength in cryptocurrencies has coincided with a decline in the US dollar following moves by US Treasury Secretary Scott Bessent aimed at calming the bond market.
The US Treasury last week announced plans to increase buybacks of longer-dated government bonds in an effort to limit further increases in long-term Treasury yields.
The move has contributed to pressure on the dollar as investors reassess the outlook for US fiscal and monetary policy, while assets such as bitcoin and gold have benefited from renewed demand.
Reuters quoted the Senior Researcher at HashKey Group, Tim Sun, as saying that Bessent’s messaging had reinforced expectations that US policymakers may have a lower tolerance for further increases in long term bond yields, particularly ahead of the midterm elections.
- “That would create a relatively supportive macro backdrop for assets such as bitcoin and gold,” Sun said.
Gold has also benefited from the weaker dollar, rising to a three-month high.
Get up to speed
Earlier on Sunday, Nairametrics reported that the pioneer crypto asset had jumped as much as 9.5% and changed hands at around $77,500, which also came as the highest level since May when it traded at $80,000.
In May, BTC climbed above the 200-day moving average for the first time since December 2025, only one month after breaking an all-time high over $126,000.
The 200-day moving average is commonly used to observe markets over an extended period, and confirming a position over the average may suggest the beginning of the months-long downward trend has ended for Bitcoin.
Investors revive debasement trade
Geoff Kendrick, global head of digital assets research at Standard Chartered, said the Treasury’s bond buyback plans were particularly supportive for bitcoin because the cryptocurrency was designed to offer investors an alternative to traditional financial assets.
The Treasury’s intervention has also revived the so called “debasement trade”, in which concerns over government intervention in bond markets drive investors towards alternative stores of value and assets that are perceived as hedges against currency debasement.
Tony Sycamore, market analyst at IG, said the Treasury announcement had prompted investors to increase exposure to both physical and digital assets as concerns over currency debasement returned.
- “A sustained break above here would open the door for a move towards $95,000 to $100,000,” Sycamore said.
What you should know
Meanwhile, the growing demand for faster bitcoin to naira conversion in Nigeria is gradually reshaping how crypto users withdraw digital assets.
According to participants within the Nigerian crypto ecosystem, concerns around delayed settlements, payment disputes, account restrictions, and fraud risks linked to informal P2P transactions have contributed to rising interest in centralized crypto conversion platforms that automate payouts directly into local bank accounts.
The trend comes as cryptocurrency adoption across Nigeria continues expanding despite ongoing regulatory discussions surrounding digital assets and virtual asset service providers.
