Bitcoin Hits New High as Dollar Weakens Amid Volatility
Bitcoin is poised to record its third consecutive winning week as investors seek refuge from volatility in traditional markets. The digital asset has surged 4.6% this week, with prices reaching a high of $82,272.31 on Friday.
This marks Bitcoin's highest level since May 11, when it peaked at $82,499.99. The token's recent uptrend can be attributed to the debasement trade, where investors move away from dollars into assets like crypto or gold.
According to Dominika Nestarcova, Goldman Sachs executive director of digital assets, 'the price breakout came towards the end of August with the re-emergence of the debasement trade re-igniting investor interest in BTC.'
The US Treasury's announcement to increase purchases of longer-dated Treasuries and a subsequent drop in long yields have contributed to the dollar's weakness. As a result, both Bitcoin and gold have seen significant gains.