Bitcoin Surges to Three-Month High on Debasement Trade Revival
Bitcoin has surged to its highest price in three months, reaching $80,908 on Tuesday. This marks a 2.5% increase from the previous day's close and is the largest weekly gain for the cryptocurrency in about three years.
The rally comes amid renewed optimism in the crypto market, driven by a confluence of bullish signals. The US Treasury Secretary Scott Bessent announced last week that the US will step up its bond repurchases to bring long-term yields lower, sparking a new round of dollar selling. This move has revived the 'debasement trade', which views Bitcoin as a safe-haven asset against inflation and currency debasement.
Analysts point out that this development is in line with the original purpose of creating Bitcoin, to escape fiat currency debasement and inflation driven by central bank money creation. Lacie Zhang, a research analyst at Bitget Wallet, noted: 'The macro backdrop turned more supportive after the Treasury's expanded long-dated buyback plan helped weaken the dollar and revive the 'debasement trade' across Bitcoin and gold.'