Bitcoin Breakout Hinges on Two Market Scenarios

Bitcoin's recent price surge has been influenced by the US Treasury Department's purchases of long-term government bonds and concerns about public debt, according to CoinShares.

The company stated that Bitcoin has demonstrated increasingly gold-like price behavior over the past two weeks, with its rise from lows of $60,000 to $80,100 supported by renewed concerns about the US fiscal sustainability.

However, CoinShares emphasized that the main constraint on Bitcoin's rise remains the Fed's monetary policy. For a sustained breakout above $80,000, one of two scenarios must materialize: a resolution to the conflict with Iran leading to lower oil prices and reduced inflation expectations, or further weakening of confidence in US government debt.