Bitcoin Surges Past $80,000 Amid Dollar Weakness and Bond Market Intervention

Bitcoin has surged above $80,000 for the first time since mid-May as investors seek alternative assets amidst a weakening US dollar and expectations of more supportive policy environment.

The world's largest cryptocurrency reached an intraday high of $81,237.94 during Asian trading on Tuesday, its strongest level since May 15th.

Bitcoin's rally has been linked to the US Treasury's plans to buy back more long-term government bonds, a move aimed at easing pressure in the long-end of the Treasury market and containing further increases in long-term yields.

The announcement contributed to weakness in the US dollar, encouraging investors to seek alternative assets such as Bitcoin and gold. Gold rose to a three-month high on Tuesday.

According to Tim Sun, senior researcher at HashKey Group, the Treasury's messaging had reinforced expectations that US policymakers could be increasingly reluctant to allow long-term borrowing costs to rise sharply, particularly ahead of the midterm elections.