Bitcoin Crosses $80,000 For The First Time Since May Amid Crypto Bounce Back

Topline

The price of Bitcoin rose past $80,000 late on Monday, leading a continued rise in the price of major cryptocurrencies that began last week amid interest in the so-called “debasement trade” after the Treasury intervention in the bond market.

Key Facts

The price of Bitcoin—the world’s most valuable cryptocurrency by market cap—rose to $80,453 early on Tuesday, up more than 25% in the past week.

This is the first time since mid-May that Bitcoin has crossed $80,000—but it is still well below the all-time peak of $126,000 reached last year.

Ether, the second-most valuable cryptocurrency by market cap, rose to $2,503 early Tuesday, up more than 30% from the previous week.

The crypto rally helped boost other major tokens, with Solana’s SOL, Binance’s BNB, XRP and the memecoin DOGE rising 32%, 18.7%, 51.7% and 31.8%, respectively in the past seven days.

What Do We Know About The Debasement Trade?

Last week, Treasury Secretary Scott Bessent announced he would double the Treasury’s buyback of long-dated bonds in a bid to curb rising yields. The move came after 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 billion. The move prompted a fresh round of dollar selling, while boosting crypto and gold. In a blog post on Friday, hedge fund billionaire Ray Dalio warned of a looming debt crisis and said investors should be “underweighting debt assets like bonds, and overweighting gold and a bit of Bitcoin.”