Bitcoin Breaks Above $80,000 as Debasement Trade Revives

Bitcoin surged to a three-month high above US$80,000 on August 25 after weeks of steady gains. The cryptocurrency climbed as much as 2.5% to US$80,908, its highest level since May 15. This increase marks the biggest weekly jump in about three years, with Bitcoin rising by 23% over the seven days through August 23.

The price surge comes amid a confluence of bullish signals that have forced the liquidation of billions in leveraged bets against the cryptocurrency. The 'debasement trade', where investors seek to escape fiat currency debasement and inflation driven by central bank money creation, has been revived, with US Treasury Secretary Scott Bessent's announcement last week sparking a new round of dollar selling.

'The macro backdrop turned more supportive after the Treasury's expanded long-dated buyback plan helped weaken the dollar and revive the 'debasement trade' across Bitcoin and gold,' said Lacie Zhang, a research analyst at Bitget Wallet. Spot Bitcoin exchange-traded funds had their strongest weekly inflow in 10 months last week as the token surged.

The 13 US-listed funds drew in a net US$1.92 billion, the most since early October 2025, according to data compiled by Bloomberg. However, analysts have pointed out that this surge may be driven by short covering rather than sustained demand, and caution remains as Bitcoin's price remains well below its peak of about US$126,000 reached in October.