Bitcoin Reclaims $80,000 for First Time in More Than Three Months

Forecast Trend Report by Period

Bitcoin rose back above $80,000 intraday for the first time in more than three months. A weaker dollar, unease in the U.S. Treasury market and fresh inflows into spot exchange-traded funds are reviving sentiment toward digital assets.

As of 3:10 p.m. on Aug. 25, Bitcoin traded at $78,945.31, according to CoinMarketCap. Earlier in the Asian session, Reuters reported that it climbed as high as $81,237.94, its highest level since mid-May.

Bitcoin had recently traded in a range around $64,000. The mood began to shift after Aug. 19, when buying picked up on news that the U.S. Treasury would expand repurchases of mid- to long-term government bonds and optimism grew over improvements to crypto rules.

Reuters cited dollar weakness and the return of currency-debasement trades as key drivers of the rally. As the Treasury expanded bond buybacks to help stabilize long-term yields, investors sold dollars and bought alternative assets such as gold and Bitcoin, the report said.

Investor sentiment also improved quickly. The Crypto Fear & Greed Index stood at 83 on Aug. 25. On the 0-to-100 scale, a reading above 80 is classified as extreme greed, the strongest level of investor appetite.