Bitcoin rose to $80,000 amid fears of a global debt crisis

Bitcoin rose to the $80,000 mark over the past week, posting one of the best weekly performances in recent years amid concerns about growing fiscal problems and a weakening dollar. Bloomberg reports, according to UNN.

Details

The cryptocurrency’s boost was partly driven by changes in the bond market after U.S. Treasury Secretary Scott Bessent announced plans to at least double buybacks of long-term Treasury bonds. This helped lower bond yields and weaken the dollar, while simultaneously pushing gold prices higher.

These conditions renewed investor interest in the so-called debasement trade — a strategy in which rising fiscal tensions and easing financial conditions boost demand for scarce assets, including bitcoin. 

Bitcoin fell below $60,00025.06.26, 02:17 • 12289 views

Other factors included mass liquidations of short positions, inflows into spot bitcoin ETFs, and expectations of more favorable regulatory conditions in the United States.

It is very encouraging to see some signs of life in the cryptocurrency market. And this rally is different from the other uncertain sparks seen over the past few months

Will bitcoin be able to continue rising

Standard Chartered analyst Geoffrey Kendrick believes that the current rise could be self-reinforcing. According to him, record liquidations of short positions and more than $1 billion in weekly inflows into spot bitcoin ETFs are creating conditions for further growth, which could attract new investors to the market.

At the same time, bitcoin remains approximately 43% below its all-time high, set in October. Much of the latest jump was linked specifically to the forced closure of short positions, so the cryptocurrency needs sustained demand — not merely a short-term surge — to establish a new stable price range.

Bitcoin is heading for its biggest weekly gain in three years21.08.26, 13:22 • 4079 views