Bitcoin Blasts Past $80,000 as Treasury's Bond Repurchases Spark Rally

Bitcoin has reached a new milestone, surpassing $80,000 in Asian morning hours on Tuesday. The cryptocurrency is up 4% on the day and over 25% for the week, extending its rally that began with the Treasury's move to expand its bond buybacks.

The surge in Bitcoin's price has raised concerns about overbought conditions, as Bitfire Research pointed out a widely watched momentum gauge sitting near 78. A reading above 70 is typically seen as a sign that a price has climbed too far too fast and is due for a correction.

According to Bitfire, selling pressure is likely between $78,500 and $82,000, while buyers may step in around $72,400 to $73,500. Solana led the major cryptocurrencies, rising almost 8% to just above $101 and nearly 35% over seven days.

The rally has been fueled by Treasury Secretary Scott Bessent's plan to increase bond repurchases, which has revived talk of the debasement trade. This refers to the idea that holding assets outside government control protects against a currency losing value.