Bitcoin tops $80,000 on dollar weakness and legislative hopes

Bitcoin surpassed $80,000 on Tuesday for the first time since May, driven by a weaker dollar and favorable legislative prospects, while investors largely ignored US trade threats against Iran's partners Source: elnacionalve. The cryptocurrency rose 1.12% to $79,812.50 around 9:35 GMT, having gained nearly a quarter of its value since Wednesday Source: diariolibree. In Asian markets, it traded at $80,323.24 after touching $81,237.94, its highest since mid-May, and is up 28% in August, heading for its best month since November 2024 Source: mileniomx.

Drivers

President Donald Trump's support for the CLARITY Act, a bill to regulate digital currencies, has boosted sentiment Source: elnacionalve. Additionally, the Treasury's announcement of an expanded bond buyback program has lowered US bond yields, pressuring the dollar and benefiting alternative assets like bitcoin and gold Source: mileniomx. Analysts note that such intervention "reavivan el fantasma de una mayor devaluación del dólar" Source: listindiario.

Market reaction

Geoff Kendrick of Standard Chartered called the Treasury move "exactly the type of measure that bitcoin likes," as the asset was designed to help investors bypass such interventions Source: mileniomx. Tony Sycamore of IG said a sustained break above this level could open the door to $95,000 or $100,000 Source: mileniomx.

Iran sanctions

Meanwhile, the dollar remained stable, and the forex market stayed calm despite new "secondary" sanctions announced by Treasury Secretary Scott Bessent targeting Iran's trading partners in gold, technology, digital assets, aviation, and shipping Source: elnacionalve. Skepticism grows about Bessent's willingness to enforce the threat, with Carol Kong of CBA doubting China will yield to US pressure Source: diariolibree.