Bitcoin Rides Debasement Trade to New Three-Month High
Bitcoin's price has surged to its highest level in three months, reaching $80,908 on Tuesday, according to data from Asia. The token had rallied by 23% over the past week, marking its biggest weekly jump in about three years.
The increase is attributed to a combination of factors, including renewed optimism around the debasement trade and the US Treasury's plan to step up bond repurchases. This move has weakened the dollar and sparked a new round of dollar selling, which benefits Bitcoin as it was originally created to escape fiat currency debasement.
'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.