BTC Surges Past $80K After 3 Months: What’s Driving The Rally?

The price of Bitcoin, the world’s most valuable cryptocurrency by market capitalization, rose past $80,000 for the first time in over three months on Tuesday.

Bitcoin (BTC) was at $80,836.00 around 2:30 am IST. BTC was the top trending ticker on Stocktwits at the time of writing, with retail sentiment for the cryptocurrency climbing over the past week to ‘extremely bullish.’ Ethereum (ETH) was up nearly 1.8%, above the $2,500 level.

The surge comes amid a mix of macroeconomic and policy developments, including renewed U.S.-Iran tensions, the Treasury’s decision to expand bond buybacks and President Donald Trump’s continued push for crypto-friendly regulation.

Bitcoin emerged as a key beneficiary of the U.S. Treasury’s move to support the long end of the bond market. The decision to double long-dated bond buybacks pushed Treasury yields lower and weakened the dollar, prompting investors to rotate into alternative stores of value such as Bitcoin and gold, which have been the worst-performing major assets this year. Bitcoin surged more than 25% in the past week, with the rally also amplified by a short squeeze.

The 30-year Treasury yield rose to its highest level since 2007 amid concerns about the war in Iran and the U.S. national debt hitting $40 trillion, which in turn prompted a fresh round of dollar selling and boosted crypto and gold.