Bitcoin returns to $80,000 after a lapse of 3 months! The devaluation transaction logic has been reactivated, but the sustainability of demand is questionable

The Zhitong Finance App learned that Bitcoin once climbed 2.5% to $80,908 during the Asian session on Tuesday (August 25), returning above $80,000 for the first time since May 15. Previously, the cryptocurrency had a cumulative increase of 23% in the seven trading days up to last Sunday, the biggest weekly gain in about three years. The resonance of multiple favorable signals triggered the forced liquidation of multi-billion dollar leveraged positions, and the crypto market, which had been under pressure for a long time, ushered in emotional healing. However, the current price is still far below the historic peak of around $126,000 set in October last year.

The core catalyst for this round of the market comes from a macroeconomic shift. US Treasury Secretary Scott Bessent (Scott Bessent) announced last week that the US will step up efforts to repurchase long-term treasury bonds to reduce long-term yields. This move triggered a new round of dollar sell-off and reignited market discussions on “debasement trade” (debasement trade). Skeptics, on the other hand, believe that the plan further shows that the Trump administration is not ready to actually reduce the fiscal deficit. The original purpose of Bitcoin was to avoid the risk of fiat currency depreciation and inflation caused by the central bank's excess currency.

“After the US Treasury expanded its long-term bond repurchase program, the US dollar weakened, and the 'depreciation trading' between gold and Bitcoin became active again, and the macro environment was more friendly to crypto assets.” Bitget Wallet research analyst Lacie Zhang said.

Institutional funds were returned at the same time. According to compiled data, the total net inflow of 13 US spot Bitcoin ETFs last week was US$1.92 billion, the largest weekly inflow since the beginning of October last year; of these, the net inflow in a single day reached US$606 million on August 20, a record high of more than three months.

The crypto market also received a policy boost. On the day Bezent announced, US President Trump held a meeting with industry leaders, which reignited the market's optimistic expectations about the government's pro-crypto stance. Previously, the market structure bill “Clarity Act” (Clarity Act) failed to enter the voting process before the Senate adjourned in August, and the legislative process slowed for a while. Trump urged the Senate to pass the bill, which is expected to be reconsidered in mid-September.

The sharp rise in the price of Bitcoin caught many traders by surprise. According to Coinglass data, leveraged short positions in crypto assets across the market were liquidated for about $7.2 billion last week.

Crypto traders have been searching for the bottom of the market for months. After hitting an all-time high in October last year, Bitcoin was in a downward channel for most of 2026.

However, there are still voices of doubt in the market. Some analysts pointed out that this round of growth was mainly driven by bearish squeeze, and it remains to be seen whether demand-side support will continue.