Bitcoin Breaks Above $80,000 as Debasement Trade Chatter Revives
Bitcoin has broken above $80,000 for the first time since mid-May as the crypto market experiences a sharp rebound. The original cryptocurrency rose to as much as $81,257 on Tuesday before reversing gains to trade little changed around $79,300 at 6:30 am in New York.
The confluence of bullish signals has forced the liquidation of billions in leveraged bearish bets. Treasury Secretary Scott Bessent's announcement that the US will step up its bond repurchases in a bid to lower long-term yields sparked a fresh round of dollar selling, reviving chatter about the debasement trade.
Bitcoin was originally created as a way to escape fiat currency debasement and inflation driven by central bank money creation. Its price has rallied 23% in the seven days through Sunday, the biggest weekly jump in about three years, as Bessent's bond-buying plan helped jolt digital assets out of months of sideways trading.
A close above Bitcoin's 50-week moving average of roughly $81,000 would be further constructive on a continuing bull rally. The 13 US-listed spot Bitcoin exchange-traded funds had their strongest weekly inflow in 10 months last week as the token surged, drawing in a net $1.92 billion.
Roughly 60% of Bitcoin in circulation hasn't moved for more than a year, according to Cici Lu McCalman, founder of Venn Link Partners. 'A lot of Bitcoin effectively isn't available to trade,' she said. 'So when ETF demand suddenly accelerates, the marginal available supply can be quite tight.'