Bitcoin Tops $80,000 as Crypto Rally Accelerates

Bitcoin climbed above $80,000 early Tuesday, extending a broad cryptocurrency rally that gained momentum last week as investors turned toward the so-called “debasement trade” following a Treasury intervention in the bond market.

The world’s largest cryptocurrency by market value reached $80,453 early Tuesday, marking a gain of more than 25% over the previous seven days. It was the first time bitcoin had traded above $80,000 since mid-May, although the cryptocurrency remains well below its record high of roughly $126,000 set last year.

Ether, the second-largest cryptocurrency by market capitalization, also advanced sharply, reaching $2,503 early Tuesday. Its price was more than 30% higher than it had been a week earlier.

The gains extended across several other major digital assets. Solana’s SOL rose 32% over the past seven days, while Binance’s BNB gained 18.7%. XRP climbed 51.7%, and the meme-based cryptocurrency DOGE increased 31.8% during the same period.

The latest crypto gains followed Treasury Secretary Scott Bessent’s announcement last week that the Treasury would double its planned purchases of long-dated government bonds. The intervention was intended to help contain rising yields after the 30-year Treasury yield reached its highest level since 2007. The move came amid concerns surrounding the war in Iran and the U.S. national debt reaching $40 billion.

The Treasury action contributed to renewed selling of the U.S. dollar while also supporting demand for cryptocurrencies and gold. Hedge fund billionaire Ray Dalio warned in a Friday blog post about a potential debt crisis and advised investors to be “underweighting debt assets like bonds, and overweighting gold and a bit of Bitcoin.”

The “debasement trade” refers to shifting investments away from fiat currencies and government debt and toward scarce assets such as gold and bitcoin. Investors pursuing the strategy view those assets as potential protection against a decline in the value of the dollar.

Bitcoin’s latest advance also comes after President Donald Trump hosted several cryptocurrency executives at the White House last week. The event provided another boost to the sector, with Trump urging Congress to advance the long-delayed CLARITY Act, legislation supported by the cryptocurrency industry that would establish legal guidelines for digital assets.

“We need Congress to take the next step by passing the CLARITY Act, a fair version of the CLARITY Act,” Trump said at the event. He described the legislation as “very, very powerful” and said it would help the United States remain ahead of China and other countries.