Bitcoin crosses $80,000 to reach highest level in three months

Bitcoin has crossed the $80,000 mark for the first time since mid-May on renewed optimism about the crypto market.

The world's biggest cryptocurrency rose about 4 per cent to reach $80,246 on Tuesday morning, according to data from CoinMarketCap.

Bitcoin rallied throughout last week, although it remains well below its peak of about $126,000 hit in October.

It received a boost after the US Treasury on Wednesday said it would double the size of its repurchases of long-dated securities to at least $4 billion per round over the next quarter. Washington might even further boost its Treasury buybacks.

The latest rally appears to be driven by a combination of improving liquidity expectations and a lower regulatory risk premium, said Naeem Aslam, chief investment officer of Zaye Capital Markets.

"US Treasury action to increase purchases of longer-dated securities helped pull yields lower and improve risk appetite, while President [Donald] Trump’s renewed push for clearer digital-asset legislation has strengthened expectations that institutional participation could become easier," he said.

During a White House meeting with crypto industry executives last week, Mr Trump called on the US Congress to pass a “fair version" of the Clarity Act.