Bitcoin Breaks $80K Barrier Ahead of Crucial Inflation Report

Bitcoin has surged past $80,000 for the first time in over three months of trading, reaching an intraday high of $81,237.94 on Tuesday.

The rally comes ahead of a crucial report on US PCE inflation due on Wednesday, August 26, which could influence the Federal Reserve's monetary policy decisions.

The Treasury's decision to double its bond buying of long-dated government bonds has contributed to the surge in Bitcoin and other assets. The move has lifted pressure on longer-term yields and supported the dollar.

Retail sentiment is extremely positive, with a Stocktwits trader predicting that breaking through the mid-$80,000 range could lead to $100,000 almost immediately.