SINGAPORE, Aug 25 — Bitcoin rose above US$80,000 (RM323,530) to hit a more than three-month high on Tuesday as a soft United States (US) dollar, in the wake of the moves by US Treasury Secretary Scott Bessent to calm the bond market, revived momentum in the crypto sector.
Last week, US President Donald Trump called on Congress to pass a bill that would bring clearer definitions to the growing cryptocurrency sector. Since then, Bitcoin, the world's largest cryptocurrency, has risen 16 per cent.
It last traded at US$80,323.24 (RM324,835) in Asian hours, after earlier touching US$81,237.94 (RM328,534), its highest level since mid-May. Bitcoin is up 28 per cent so far in August, set for its biggest monthly gain since November 2024.
Cryptocurrencies also got a big boost after the US Treasury unveiled plans last week to buy back more long-dated bonds to help cap gains in long-end yields, a move that has led the greenback to bear the brunt of investor angst.
HashKey Group senior researcher Tim Sun said Bessent's messaging has reinforced the market's view that, at least through the midterm elections, US policymakers may have a lower tolerance for a further rise in long-end yields.
"That would create a relatively supportive macro backdrop for assets such as bitcoin and gold," he said. Gold has been another beneficiary of dollar weakness, rising to a three-month high.
Standard Chartered global head of digital assets Geoff Kendrick said that the US Treasury announcement is "exactly the type of thing Bitcoin loves". In a note last week, he added that Bitcoin was built to allow investors a way to avoid this type of intervention.
The action stoked increased chatter around the so-called debasement trade, where moves to keep long-end yields from reaching market-clearing levels via buybacks shift pressure from the bond market to the currency market.
"This (Treasury announcement) prompted buyers to scramble into physical and digital assets as debasement trade fears re-emerged. A sustained break above here would open the door for a move towards US$95,000 (RM384,189)-US$100,000 (RM404,410)," said IG market analyst Tony Sycamore.
