Bitcoin has climbed above the $80,000 mark, reaching its highest level in more than three months as investors increased their interest in digital assets.
The world’s largest cryptocurrency rose to $81,237.94 during Asian trading hours before easing to about $80,323.24, according to Reuters. The move represents a major recovery for Bitcoin after months of volatility and renewed concerns about the global economy.
Bitcoin has gained roughly 16 per cent since US President Donald Trump called on Congress last week to pass legislation that would provide clearer regulatory definitions for the cryptocurrency industry.
The latest rally has also pushed Bitcoin’s August gain to about 28 per cent, putting the cryptocurrency on course for its strongest monthly performance since November 2024.
Weaker Dollar Supports Bitcoin
The Bitcoin rally has happened alongside a decline in the US dollar, following moves by the US Treasury to reduce pressure in the government bond market.
The Treasury recently announced plans to increase buybacks of longer-dated government bonds. The move is aimed at limiting further increases in long-term Treasury yields and calming concerns in the bond market.
A weaker dollar often provides support for assets such as Bitcoin and gold because investors may look for alternative stores of value.
Tim Sun, a senior researcher at HashKey Group, said the Treasury’s approach suggested that US policymakers may have limited tolerance for further increases in long-term bond yields.
Gold has also benefited from the shift, reaching a three-month high as investors reassessed the outlook for the dollar and US financial markets.
Investors Return to the “Debasement Trade”
The latest Bitcoin rally is also being linked to what market analysts call the “debasement trade.”
This strategy involves investors moving money into assets such as gold and Bitcoin when they become concerned about government debt, currency weakness or policies that could reduce the purchasing power of traditional currencies.
Geoff Kendrick, global head of digital assets research at Standard Chartered, said the Treasury’s bond-buyback plans could be particularly positive for Bitcoin because the cryptocurrency is viewed by some investors as an alternative to traditional financial assets.
Tony Sycamore, an analyst at IG, said the renewed demand for physical and digital assets could push Bitcoin even higher. He suggested that a sustained move above current levels could open the way toward the $95,000 to $100,000 range.
Bitcoin’s technical position has also improved. The cryptocurrency previously moved above its 200-day moving average, an indicator commonly used by traders to assess longer-term market trends.
Nigeria’s Crypto Market Also Evolves
The Bitcoin rally comes as Nigerian crypto users increasingly look for faster and safer ways to convert digital assets into naira.
Participants in Nigeria’s cryptocurrency market say concerns over delayed payments, disputes, fraud and restrictions associated with informal peer-to-peer transactions are encouraging some users to consider centralised platforms that can convert crypto and pay directly into local bank accounts.
The shift highlights how Nigeria’s growing interest in cryptocurrency is changing the way users buy, sell and withdraw digital assets.
While regulatory discussions around cryptocurrency and virtual asset service providers continue, demand for convenient crypto-to-naira transactions remains strong.
With Bitcoin now back above $80,000, investors will be watching whether the rally can continue or whether the cryptocurrency will face another period of volatility.
