Bitcoin tops $80,000 for first time since May as soft dollar, debasement fears boost momentum

Bitcoin climbed above $80,000 on Tuesday to hit a more than three-month high, as a weaker US dollar and efforts by Treasury Secretary Scott Bessent to calm the bond market revived momentum in the cryptocurrency sector. Bitcoin has gained 16% since last week, when US President Donald Trump urged Congress to pass legislation providing clearer rules for the cryptocurrency industry.

Bitcoin rose as much as 2.9% to $81,257 on Tuesday in Asia, a level last seen on May 15. It is up 28% so far in August, putting it on track for its biggest monthly gain since November 2024.

Bitcoin is back in favour as the debasement trade gains renewed attention, following Bessent’s announcement last week that the US would step up bond repurchases to lower long-term yields. The move triggered fresh selling in the dollar, while sceptics saw it as further evidence that the Trump administration is not yet ready to tackle the budget deficit.


But despite the rally, Bitcoin remains around 36% below its record high of $126,198, hit in October 2025.

Over the past week, Ethereum has gained 32% to trade at around $2,501. Among major altcoins, BNB, XRP, Solana, Tron, Hyperliquid, Dogecoin and Cardano have rallied by as much as 51%.

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Vikram Subburaj, CEO of Giottus, said Bitcoin’s move above $80,000 shows that its recovery from the June 30 low of around $58,500 has gained momentum. However, Bitcoin remains nearly 36% below its October 2025 record of $126,198, keeping the market in recovery mode rather than price discovery.

Subburaj noted that Bitcoin has gained more than 26% in seven days, but cautioned investors against chasing the rally or assuming it will continue. He advised using limit orders, maintaining adequate margin and avoiding excessive leverage, noting that a 10% adverse move can largely exhaust the initial margin on a 10x position.

Over the past 24 hours, Bitcoin and Ethereum gained 3.98% and 1.71%, respectively. Among major altcoins, BNB, XRP, Solana, Tron, Hyperliquid, Dogecoin and Cardano rallied by as much as 7.63%.

Prateek Gupta, Head of Business at Mudrex, said Bitcoin is maintaining its upward momentum after posting its largest-ever weekly dollar gain of more than $14,200. The Fear & Greed Index has also moved into “Extreme Greed” for the first time since November 2024, signalling stronger risk appetite.

BTC’s rebound has been supported by improving technical momentum, softer Treasury yields, a weaker dollar, renewed spot ETF demand and short liquidations, according to the CoinSwitch Markets Desk.

Global crypto market capitalisation rose 2.77% to $2.71 trillion, according to CoinMarketCap. Institutional interest has also remained strong, with $206.4 million in net inflows on August 24. Weekly inflows stand at $1.92 billion for Bitcoin and $697 million for Ethereum, signalling strong regulated demand, said Nischal Shetty, founder of WazirX.

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Here is what other experts say about Bitcoin above $80,000
Riya Sehgal, Research Analyst, Delta Exchange: Bitcoin is leading the latest leg of the crypto rally, with its move above $80,000 lifting the broader market. CoinGlass data shows that total liquidations reached around $634.9 million over the past 24 hours, with a heavy concentration of short liquidations suggesting forced covering is adding further upside momentum.

Avinash Shekhar, Co-founder & CEO, Pi42: Bitcoin’s move above $80,000 signals a sharp shift in market momentum, supported by macroeconomic factors and the unwinding of leveraged short positions. Nearly $1.9 billion in net inflows into US spot Bitcoin ETFs last week also suggests the rally is not being driven by retail investors alone.

Raj Karkara, COO, ZebPay: Strong institutional demand through spot Bitcoin ETFs, the US Treasury’s decision to increase longer-dated bond buybacks, and the resulting shift in liquidity and dollar sentiment have created a more supportive macro backdrop for Bitcoin.

Vikaas M Sachdeva, CEO, BitDelta India: Bitcoin’s brief move above $80,000 reflects a combination of ETF-driven demand, improving liquidity and renewed regulatory attention, rather than a fundamental shift in the cryptocurrency’s long-term trajectory.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)