Bitcoin climbed above $80,000 on Tuesday for the first time since May, extending a sharp August rally as a weaker U.S. dollar and renewed demand for alternative assets supported prices. The cryptocurrency briefly reached $81,237.94 before paring gains, with Bitcoin up about 28% for the month.
Bitcoin rose above $80,000 on Tuesday, extending a strong rally that has pushed the world's largest cryptocurrency to its highest level in more than three months.
Bitcoin reached $81,237.94 during Asian trading, its highest level since mid-May, before giving back some of its gains. It was last quoted at around $80,323, according to Reuters. The cryptocurrency has gained about 28% in August, putting it on track for its strongest monthly performance since November 2024.
The latest advance comes as investors respond to a weaker U.S. dollar and renewed expectations that policymakers will seek to limit pressure on longer-dated Treasury yields.
The U.S. Treasury last week announced plans to double its quarterly purchases of longer-dated government bonds. The move has contributed to lower longer-term yields and increased investor interest in assets such as bitcoin and gold.
The Treasury's actions have also revived concerns about potential currency debasement, encouraging some investors to seek alternative stores of value. Tony Sycamore, a market analyst at IG, said the Treasury announcement had prompted investors to move into physical and digital assets as those concerns returned.
Bitcoin's latest move follows a broader recovery in cryptocurrency markets. Reuters reported that bitcoin had risen 16% since U.S. President Donald Trump called on Congress to pass legislation providing clearer definitions for the cryptocurrency sector.
Other major cryptocurrencies also advanced. Ether was trading close to its January high, while the broader crypto market benefited from renewed investor interest.
Market participants are nevertheless watching whether Bitcoin can sustain its move above $80,000. The cryptocurrency's rapid August gains have raised expectations that further momentum could take prices toward higher levels, although such forecasts remain market views rather than confirmed outcomes.
Tim Sun, senior researcher at HashKey Group, said recent Treasury policy signals had reinforced the view that U.S. policymakers may have limited tolerance for further increases in long-term borrowing costs.
For now, Bitcoin's break above $80,000 marks a significant recovery from its recent weakness and places the cryptocurrency at the center of renewed investor interest in alternative assets.
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