Bitcoin Price Prediction: Bitcoin Breaks $80,000, Can It Return to $100,000?

TradingKey - As of the Asian trading session on August 25, Bitcoin (BTC) prices briefly breached the $80,000 mark intraday, reaching a daily high of $81,272.62 and setting a new near-three-month high. Recently, a continuously weakening US dollar, ongoing Bitcoin ETF capital inflows, and an easing US crypto regulatory environment have supported Bitcoin prices to move steadily higher. Since August, Bitcoin has accumulated a gain of over 28%, rebounding sharply from its mid-August low near $64,000, with short-term market bullish sentiment showing significant improvement.

From a fundamental perspective, the main drivers supporting the sustained rise in Bitcoin prices recently are the depreciation of the US dollar, ETF capital inflows, and favorable regulatory policies.

US Treasury Secretary Bessent recently took measures to stabilize the long-term Treasury market, including expanding buybacks of long-term US Treasuries. The market believes that US policymakers' tolerance for continuously rising long-end Treasury yields is declining. Meanwhile, mounting market concerns over the US fiscal deficit, government debt, and the long-term purchasing power of the US dollar have caused the greenback to weaken continuously, prompting some investors to increase their allocations to alternative assets such as gold and Bitcoin.