Bitcoin crossed $80,000 to hit a more than three-month high on Tuesday, according to Reuters. It was last at $80,323.24 during the Asian hours, having earlier touched $81,237.94, its highest level since mid-May. Bitcoin is up 28% so far in August, set for its biggest monthly gain since November 2024.
This comes as Treasury Secretary Scott Bessent’s attempt to calm the bond market, reviving momentum in the crypto sector. President Donald Trump last week called on Congress to pass a bill that would bring clearer definitions to the growing cryptocurrency sector. Since then, Bitcoin, which is the world’s largest cryptocurrency, has risen 16%.
Last week, the U.S. Treasury unveiled plans to buy back more long-dated bonds to help cap the gains in the long-end yields, in a move that affected the dollar and boosted cryptocurrencies. Tim Sun, senior researcher at HashKey Group, said Bessent’s messaging has reinforced the market’s view that, at least through the midterm elections, U.S. policymakers may have a lower tolerance for a further rise in long-end yields. Gold has also benefitted from the dollar’s weakness, reaching a three-month high.
READ: Trump presses Congress to pass stalled CLARITY Act on crypto (August 20, 2026)
The Treasury announcement is “exactly the type of thing bitcoin loves,” Geoff Kendrick, global head of digital assets research at Standard Chartered, said in a note last week, adding that bitcoin was built to allow investors a way to avoid this type of intervention.
Last week, Trump called on policymakers to pass a fair version of the CLARITY Act. The CLARITY Act, which remains stalled in Congress, would establish rules for determining which tokens qualify as securities or commodities and which agencies would oversee the sector. Lawmakers now have limited time to reach an agreement on the legislation before a new Congress takes office next year.
The act would allow a majority of crypto tokens to be classified as “digital commodities” and regulated by the Commodity Futures Trading Commission (CFTC). Some tokens would be classified as securities, keeping them under the oversight of the Securities and Exchange Commission (SEC). A version of the CLARITY Act passed the House in July last year. However, the legislation remains stalled in the senate.
READ: Trump directs federal agencies to shape crypto rules (August 19, 2026)
After Trump’s address on Aug. 19, the price of bitcoin rose to $71,834, up more than 11.5% from Tuesday’s price. It was the first-time bitcoin had breached $70,000 since early June. The price of ether rose to $2,261.26, up more than 18.3% from Tuesday.
There has also been talk of the “debasement trade” where the moves to prevent long-end yields from reaching market-clearing levels via buybacks lead the pressure to shift from the bond market to the currency market.
“This (Treasury announcement) prompted buyers to scramble into physical and digital assets as debasement trade fears re-emerged,” said Tony Sycamore, market analyst at IG. “A sustained break above here would open the door for a move towards $95,000–$100,000.”