Bitcoin tops $80,000 as Treasury bond buybacks fuel rally

Bitcoin surged past $80,000 for the first time since May, capping a week of dramatic gains driven by a US Treasury intervention in the bond market and renewed Washington support for crypto. The rally, which saw bitcoin climb over 20% in three days, its biggest such gain since 2023, was fueled by the Treasury's announcement that it would at least double its buybacks of long-dated bonds to $4 billion starting in September Source: Gizmodo. This move, aimed at calming a jittery bond market, raised concerns about dollar debasement, prompting investors to seek alternative assets like gold and bitcoin Source: AP News. Ether also broke above $2,500, its highest since January, and crypto-linked stocks rose Source: CNBC.

The catalyst

The Treasury's bond buyback plan, announced Wednesday, was the primary catalyst. Treasury Secretary Scott Bessent's intervention pushed down long-term yields, which had hit their highest since 2007, and triggered a dollar sell-off Source: Cointelegraph. This 'debasement trade' saw investors flood into gold and bitcoin Source: AP News. The move also sparked a massive short squeeze, with over $2.7 billion in crypto short positions liquidated Source: CNBC.

Washington's embrace

President Donald Trump hosted crypto industry leaders at the White House, urging Congress to pass the CLARITY Act, a bill that would create a clearer regulatory framework for digital assets Source: Euronews. The bill, which cleared the House last year, remains stalled in the Senate, needing 60 votes to overcome a procedural hurdle on September 15 Source: Euronews. Trump also reported over $1.4 billion in income from his family's crypto ventures last year Source: Gizmodo.

Skepticism remains

Despite the rally, some analysts remain cautious. Bitget CEO Gracy Chen says she is waiting for a drop to $50,000 before buying back into Bitcoin, while Transform Ventures founder Michael Terpin predicts a fall to the '40s' Source: Cointelegraph. Bitcoin remains well below its all-time high of $126,198 set in October Source: CNBC.