Bitcoin Buoys on Dollar Debasement Trade and Treasury's Bond Buy-Up

Bitcoin's price has risen, holding close to its multi-month highs despite not reaching the key $80,000 level. According to IG analysts, this increase is driven by investors seeking alternative investments away from the U.S. dollar, also referred to as the dollar debasement trade.

This trade is prompted by concerns about high levels of U.S. debt and potential for prolonged inflation, which has led to an interest in cryptocurrencies. The rise in crypto currencies also comes after the U.S. Treasury announced it will double its purchases of longer-term securities last week.

As a result, Bitcoin's price has climbed 0.5% to $78,811, although it remains below Tuesday's three-month peak of $81,237, according to LSEG data.