Bitcoin Surges to $79,989 as Treasury's Bond Buyback Plans Fuel Inflation Fears
Bitcoin's price has been on the rise, nearly reaching $80,000 on Monday as the cryptocurrency market recovered from a weekend slump. After briefly dipping below $77,000, bitcoin rebounded and trended just below $77,500 until around 7:30 a.m. EST.
The price then echoed last week's bull run by spiking to just under $79,200 before a quick sell-off pulled it back to $78,200. A secondary surge pushed prices higher, reclaiming $79,000 and reaching a new August peak of $79,989. However, a second wave of profit-taking quickly dragged the cryptocurrency back to $79,200.
Despite this volatility, bitcoin's price action during the 24-hour period left it with daily gains of approximately 3% and pushed its market capitalization to $1.59 trillion. The latest gains also brought bitcoin's year-to-date losses below 10% for the first time since mid-May.
Economist Peter Schiff warned that the U.S. Treasury's bond buyback plans could lead to 'massive QE' and runaway inflation, citing Treasury Secretary Scott Bessent's remarks as evidence of this plan. This has led to accelerated currency issuance and resulting inflationary pressures, breathing new life into bitcoin's 'digital gold' narrative.
Bitfinex analysts argue that the rally still needs real spot demand to take over from the short squeeze, outlining key indicators to watch to confirm the rally. They note that a weekly close above $73,500 would confirm the recovery, while a fall back below $64,500 would mark the rally as an overshoot.