Bitcoin Soars Above $80,000 as Debasement Trade Revives

Bitcoin's price rose above $80,000 for the first time since mid-May as the cryptocurrency market received a boost from renewed optimism and bullish signals.

The token surged as much as 2.9% to $81,257 on Tuesday before reversing gains, trading little changed around $79,300 at 6:30 am in New York.

This price increase comes amid chatter about the debasement trade, which saw Treasury Secretary Scott Bessent's announcement last week that the US will step up its bond repurchases to lower long-term yields. This move sparked a fresh round of dollar selling and caught many traders off guard.

Skeptics view the plan as further evidence that the Trump administration isn't yet ready to do the hard work of reducing the budget deficit, which has been a major concern for Bitcoin investors.