Bitcoin's price has surpassed $80,000 (approximately 110.77 million won) for the first time in over three months. The decline in the dollar's value, driven by U.S. fiscal concerns and treasury buybacks, has revived interest in alternative assets like gold and Bitcoin, known as the 'debasement trade.' Additionally, expectations for regulatory easing in the cryptocurrency market and significant inflows into spot Bitcoin ETFs have contributed to this surge.
According to global cryptocurrency market site CoinMarketCap, as of 1:29 PM KST on August 25, Bitcoin was trading at $80,242.48, up 3.93% from the previous day. Earlier in the day, it reached a high of $81,257. This marks the first time Bitcoin has crossed the $80,000 threshold since mid-May.
Following a 23% increase last week, Bitcoin has continued its upward trend this week, surpassing $70,000 just four days ago. However, it remains about one-third lower than its all-time high of around $126,000 recorded last October.
The recent rise in Bitcoin's price is largely attributed to the decline in the dollar's value, which has sparked interest in debasement trades. Last week, news of the U.S. national debt exceeding $40 trillion, along with rising U.S. Treasury yields and announcements of treasury buybacks, has led to a decrease in the dollar's value, increasing demand for alternative assets like Bitcoin and gold. Originally designed to counteract currency devaluation due to inflation, Bitcoin is gaining renewed attention amid the current decline in the dollar's value.
Rashi Zhang, a research analyst at Bitget Wallet, stated, “The U.S. Treasury's announcement to expand the scale of long-term treasury buybacks has triggered a weaker dollar, reviving the 'debasement trade' represented by Bitcoin and gold, indicating a more favorable macroeconomic environment.”
Additionally, a meeting on August 19 between President Donald Trump and key figures in the cryptocurrency industry, where he urged Congress to pass the Clarity Act, has also positively impacted Bitcoin. Although the Clarity Act, which aims to clarify the regulatory framework for the cryptocurrency market, did not receive a vote before the Senate's August recess, it is expected to be discussed again in mid-September.
Meanwhile, buoyed by the rise in Bitcoin's price, spot Bitcoin ETFs have recorded their largest weekly inflow in ten months. According to Bloomberg, 13 spot Bitcoin ETFs in the U.S. saw a total net inflow of $1.92 billion, the highest since Bitcoin reached its all-time high last October.
However, some analysts caution that the current surge in Bitcoin's price may be a temporary phenomenon driven by short squeezes, suggesting that buying momentum may not be sustainable.
* This article has been translated by AI.
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