Bitcoin extends gains as investors turn to assets resistant to currency debasement

Bitcoin continued to climb toward the $80,000 level on Thursday, holding onto the steady gains it has recorded since last week. Bloomberg ETF analyst Eric Balchunas pointed to growing demand for Bitcoin amid a broader debasement trade across currencies and financial assets.

Bitcoin’s Spent Output Profit Ratio has moved above 1, indicating that investors have begun taking profits following the cryptocurrency’s recent recovery.

Bitcoin’s technical outlook points to further upside, with traders awaiting confirmation of a breakout above the $80,000 level.

Bitcoin’s growing role as a debasement-resistant asset

The debasement trade reflects a strategic shift in investment positioning that typically emerges when expectations grow that money or other financial assets will lose part of their value.

Elevated US inflation and US government debt exceeding $40 trillion are reinforcing this trend, driving demand toward scarce assets, particularly gold and Bitcoin.

Eric Balchunas, senior ETF analyst at Bloomberg, highlighted renewed institutional demand for gold and Bitcoin in a post on X on Wednesday.

Data shared by Balchunas showed that gold and Bitcoin ETFs attracted combined inflows of more than $7 billion over the past week, marking the largest five-day inflow on record. The surge was driven primarily by debasement trades, which are drawing capital away from artificial intelligence stocks.