NEW YORK
\nBitcoin rose above $80,000 to hit a more than three-month high on Tuesday as a soft US dollar, in the wake of the moves by Treasury Secretary Scott Bessent to calm the bond market, revived momentum in the crypto sector. US President Donald Trump last week called on Congress to pass a bill that would bring clearer definitions to the growing cryptocurrency sector.
\nSince then, bitcoin, the world\u2019s largest cryptocurrency, has risen 16 per cent. It was last at $80,323.24 in Asian hours, having earlier touched $81,237.94, its highest level since mid-May. Bitcoin is up 28pc so far in August, set for its biggest monthly gain since November 2024.
\nCryptocurrencies also got a big boost after the US Treasury last week unveiled plans to buy back more long-dated bonds to help cap the gains in the long-end yields, a move that has led to the US dollar bearing the brunt of investor angst.
\nTim Sun, senior researcher at HashKey Group, said Bessent\u2019s messaging has reinforced the market\u2019s view that, at least through the midterm elections, US policymakers may have a lower tolerance for a further rise in long-end yields. \u201cThat would create a relatively supportive macro backdrop for assets such as bitcoin and gold,\u201d Sun said.
\nGold has been the other beneficiary of the dollar weakness, rising to a three-month high. The Treasury announcement is \u201cexactly the type of thing bitcoin loves\u201d, Geoff Kendrick, global head of digital assets research at Standard Chartered, said in a note last week, adding that bitcoin was built to allow investors a way to avoid this type of intervention.
\nThe action stoked increased chatter around the so-called debasement trade, where the moves to prevent long-end yields from reaching market-clearing levels via buybacks lead the pressure to shift from the bond market to the currency market. \u2014 DNA<\/p>\n","protected":false},"excerpt":{"rendered":"
NEW YORK Bitcoin rose above $80,000 to hit a more than three-month high on Tuesday as a soft US dollar, in the wake of the moves by Treasury Secretary Scott Bessent to calm the bond market, revived momentum in the crypto sector. US President Donald Trump last week called on Congress to pass a bill […]<\/p>\n","protected":false},"author":2,"featured_media":564057,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-564045","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business"],"yoast_head":"\n