Bitcoin climbed above $80,000 Tuesday to reach a three-month high, fueled by a weakening U.S. dollar.
The news comes after Congress’s efforts last week to pass legislation clarifying definitions within the growing cryptocurrency sector. As a result, bitcoin rose over 20% in three days, marking its largest three-day increase since 2023.
Cryptocurrencies also received a significant boost after the U.S. Treasury announced plans last week to buy back more long-dated bonds, aiming to cap the increases in long-end yields. This action has shifted investor concern to the U.S. dollar.
This week’s crypto movements have also sparked more discussion of the so-called debasement trade, in which efforts to keep long-end yields from reaching market-clearing levels through buybacks shift pressure from the bond market to the currency market.
Tuesday, Ether traded 1.17% higher at $2,498. XRP rose 2.6% to $1.52, up about 50% in the past seven days.
By CEO NA Editorial Staff
