Bitcoin Soars Past $81,000 as Dollar Weakens

Bitcoin's price surged past $81,000 on Monday before dipping slightly, sparking questions about whether the debasement trade is back in play.

The largest cryptocurrency reached a high of $81,160 on Tuesday evening, marking its first time above this threshold since January. Although it dropped to $79,098 by Tuesday morning in New York, the coin's 24-hour price movement remained flat.

However, over the past seven days, Bitcoin has seen a significant jump of 23%. Analysts attribute this growth to news that the Treasury would at least double its liquidity-support buyback operations, which has weakened the dollar but benefited non-yielding assets like Bitcoin.

The debasement trade involves investors buying assets as a hedge against currency devaluation. In the past, it has favored Bitcoin and precious metals because these assets cannot be endlessly printed. Some market observers believe that with the dollar becoming increasingly weaker, Bitcoin is attracting longer-term and 'smart money' investors.