Bitcoin Soars Past $81,000, Reviving Debasement Trade Speculation

Bitcoin's price has surpassed $81,000 for the first time since January, sparking questions about whether the debasement trade is back. The cryptocurrency reached a high of $81,160 on Monday evening before dipping slightly to $79,098 by Tuesday morning in New York.

The recent surge has some market observers wondering if investors are turning to Bitcoin as a hedge against a weakening dollar. This strategy, known as the debasement trade, involves buying assets that can't be printed endlessly, such as precious metals and cryptocurrencies like Bitcoin.

Last week's announcement from the Treasury about doubling the size of its liquidity-support buyback operations hurt the dollar but benefited non-yielding assets like Bitcoin. Analysts say this has some investors turning their attention back to Bitcoin, which has become increasingly less volatile in recent months.