Bitcoin Surges Above $80,000 as Debasement Trade Revives

Bitcoin's price has broken above $80,000 for the first time since mid-May, as investors' optimism about the crypto market returns. This surge in price was triggered by a confluence of bullish signals, including Treasury Secretary Scott Bessent's announcement that the US will step up its bond repurchases to lower long-term yields.

This move is seen as further evidence of the Trump administration's commitment to reducing the budget deficit, which has sparked a fresh round of dollar selling. Bitcoin was originally created as a way to escape fiat currency debasement and inflation driven by central bank money creation, and its price rallied 23% in the seven days through Sunday.

The price of gold also advanced, as both assets benefited from the 'debasement trade'. Institutional appetite for Bitcoin has returned, with spot exchange-traded funds experiencing their strongest weekly inflow in 10 months last week, drawing in a net $1.92 billion.