Bitcoin Reclaims $80,000 Mark Amid Rising Demand for Higher-Risk Assets

Bitcoin has surpassed the $80,000 mark for the first time in three months, a significant gain of approximately 25% over the past week. This surge comes as Washington attempts to curb US bond yields, which is boosting demand for tangible and higher-risk assets. According to Allen Ding, head of Hong Kong-based Bitfire Research, this price movement bears hallmarks of an early bull phase.

The recent rally gained momentum after the US Treasury revealed plans last week to step up repurchases of long-dated government debt. This policy shift has strengthened demand for higher-risk assets as a shield against the US dollar. Gold reached a three-month high of $4,698 per ounce on Tuesday, adding to its 5.1% weekly advance.

The current price of Bitcoin is nearly 36% below its October peak of $126,000. Despite this, analysts believe that the crypto slump may be coming to an end, as the token has lost close to half of its value this year.