Bitcoin Surges Above $80,000 Amid Bullish Signals

Bitcoin has broken above $80,000 for the first time since mid-May, marking a significant milestone in its price recovery. The cryptocurrency rallied 23% in the seven days through Sunday, the biggest weekly jump in about three years.

The surge comes as optimism returns to the crypto market amid a confluence of bullish signals. US Treasury Secretary Scott Bessent's announcement last week that the US will step up its bond repurchases has sparked a new round of dollar selling and revived chatter about the debasement trade, which Bitcoin was originally created to escape.

Lacie Zhang, a research analyst at Bitget Wallet, noted that the macro backdrop turned more supportive after Bessent's plan helped weaken the dollar and revive the 'debasement trade' across Bitcoin and gold.

The crypto market also got an added boost with a meeting between President Donald Trump and industry leaders, which revived optimism around the administration's commitment to crypto. Legislative momentum had slowed recently, but Trump urged the chamber to pass the Clarity Act, a market structure bill, and it is expected to be taken up again in mid-September.

As a result of the surge, about $7.2 billion in leveraged bearish bets across all cryptoassets were liquidated last week, according to Coinglass data. However, skepticism remains, with some analysts pointing out that demand may not be sustained and that the short squeeze is driving prices up.