Bitcoin Soars Past $80,000 as 'Debasement Trade' Continues

The price of Bitcoin surpassed $80,000 for the first time since mid-May, driving a resurgence in major cryptocurrencies. This upward trend began last week amidst interest in the 'debasement trade' following Treasury Secretary Scott Bessent's announcement to double the Treasury's buyback of long-dated bonds.

The move was aimed at curbing rising yields, which had reached their highest level since 2007 amid concerns about the war in Iran and the U.S. national debt hitting $40 billion. The decision prompted a fresh round of dollar selling, boosting crypto and gold.

Hedge fund billionaire Ray Dalio warned of a looming debt crisis, advising investors to 'be underweighting debt assets like bonds, and overweighting gold and a bit of Bitcoin.'