Bitcoin climbed above $80,000 for the first time since mid-May 2026, reaching a peak of $80,908 on August 25 amid strong investor demand [1, 2, 3, 4, 5, 6]. The cryptocurrency rose about 23-25% in the seven days through August 23-25, marking its largest weekly gain since 2023 [1, 2, 3, 4, 5, 6].
The rally followed US Treasury Secretary Scott Bessent’s announcement on August 18 of plans to double buybacks of long-dated government bonds to manage rising yields [1, 4, 5]. This move weakened the US dollar and revived the so-called “debasement trade,” where investors seek assets like bitcoin and gold as hedges against fiat currency dilution, according to research analyst Lacie Zhang of Bitget Wallet [1]. Market analyst Tony Sycamore of IG said the announcement prompted buyers to scramble into physical and digital assets amid renewed inflation and currency debasement concerns [4].
US-listed spot bitcoin exchange-traded funds (ETFs) drew $1.92 billion in net inflows last week, the largest weekly inflow since October 2025 [1, 3]. Earlier on August 20, bitcoin ETFs posted their biggest single-day inflow in over three months at $606.3 million [1]. About $7.2 billion in leveraged bearish bets across cryptoassets were liquidated last week as bitcoin’s price surged [1, 3].
Other major cryptocurrencies also posted gains alongside bitcoin. Ethereum’s ether rose above $2,500 on August 25, gaining 2-3% for the day and about 30% for the week [3, 5, 6]. Solana, Binance Coin, XRP and Dogecoin showed weekly gains between 18% and 52% [5].
Gold prices hit three-month highs around $4,650 to $4,700 per ounce on August 25, buoyed by similar factors driving bitcoin, including dollar weakness and political uncertainty [7, 2, 4]. Tony Sycamore noted that gold dips are expected to be supported as prices target resistance near $4,900 to $5,000 [7].
President Donald Trump met with crypto industry leaders on August 24 and urged Congress to pass the CLARITY Act, a bill aimed at clearer cryptocurrency regulation. He called the legislation “a very, very powerful structured legislation which will keep us ahead of China, keep us ahead of everyone else” [1, 4, 5].
The renewed crypto enthusiasm comes amid concerns over US debt levels, with the national debt referenced near $40 billion in related discussions [5]. Investors will be watching Treasury bond buyback activity and regulatory developments closely. Market analysts said a sustained move above current levels could open the door for bitcoin to approach $95,000 to $100,000 [4].
