Bitcoin Breaks $80K Barrier Amid Treasury Buybacks and Trump's Crypto Push

Bitcoin (BTC) broke past $80,000 for the first time in over three months on Tuesday, fueled by renewed US Treasury bond buybacks and President Donald Trump's push for crypto-friendly regulation.

The decision to double long-dated bond buybacks weakened the dollar and revived the 'debasement trade,' prompting investors to rotate into alternative stores of value like Bitcoin and gold. Ethereum (ETH) rose 32% over the past week, while Bitcoin-linked stocks Strategy (MSTR) and Coinbase (COIN) gained 31% and 20%, respectively.

Ray Dalio warned of a looming debt crisis last Friday, advising investors to 'underweight debt assets like bonds' and shift towards gold and Bitcoin. Trump's White House meeting with crypto executives also boosted the sector. The president called for Congress to pass the CLARITY Act, which would establish legal guidelines for digital assets.

Traders are bullish on BTC, with some predicting a target of $100,000 if it breaks through $80,000. Others see potential for short squeezes and dollar selling amid rising US national debt concerns.