Bitcoin Rallies Past $80k Amid Debasement Trade Concerns
Bitcoin rose sharply by 4.7% to $80,760.8 as of 01:57 ET (05:57 GMT) on Tuesday, briefly reaching a three‑month peak of $81,220.4. This price action extended a pattern of eight up days in the last nine sessions, following a pronounced rebound the previous week.
The rally was primarily attributed to heightened anxiety over U.S. fiscal health after the U.S. Treasury announced it would essentially double the pace of its bond buybacks to curb a surge in yields. Analysts described the development as a “debasement trade,” shifting market narrative from higher yields to potential USD debasement, thereby weakening the dollar, strengthening gold, and raising breakeven inflation rates. OCBC analysts noted that while quantitative easing comparisons may be overstated, the policy uncertainty and questions about Federal Reserve independence are weighing on the dollar.
Investors responded by moving into gold and cryptocurrencies, assets perceived as insulated from bond‑market turbulence. Bitcoin’s historically weak year‑to‑date performance also attracted bargain hunters.
According to Coinglass data, the Bitcoin rebound triggered the liquidation of more than $457 million in short positions over the preceding 24 hours. The same period saw $112.3 million of Ether short positions liquidated.
Altcoin prices tracked Bitcoin’s upward momentum: Ether rose 2.2% to $2,510.0, XRP gained 2.2%, Solana surged 7.6%, Cardano jumped 3.3%, BNB added 2.3%, and Dogecoin increased 1.3%. The meme‑token $TRUMP fell 1.5%.
The broader market also reflected dollar weakness, with the U.S. dollar down 2.16% against the “OFFICIAL TRUMP” token, while gold spot slipped 0.27%.