Bitcoin returns to $80,000 after three months! The devaluation trading logic is reactivated, but the sustainability of demand remains in doubt.

Bitcoin surged 2.5% to $80,908 during the Asian session on Tuesday (August 25), marking its first return above $80,000 since May 15. Prior to this, the cryptocurrency had risen 23% over seven trading days up to last Sunday, achieving the largest weekly increase in nearly three years. Multiple positive signals triggered the forced liquidation of billions of dollars in leveraged positions, bringing a sentiment recovery to the long-pressured cryptocurrency market. However, the current price still remains far below the historical peak of around $126,000 reached last October. The core catalyst for this round of market movements stems from a shift in the macroeconomic landscape. U.S. Treasury Secretary Scott Bessent announced last week that the U.S. would increase its long-term Treasury bond repurchases to suppress long-end yields, leading to a new wave of dollar selling and reigniting discussions around the debasement trade. Skeptics argue that this plan further indicates the Trump administration is not yet ready to seriously cut the fiscal deficit. Bitcoin was originally created to avoid the risks of currency depreciation and inflation caused by central bank monetary oversupply. After the U.S. Treasury expanded its long bond repurchase program, the dollar weakened, and the debasement trade in gold and Bitcoin became active again, making the macro environment more favorable for crypto assets, said Lacie Zhang, a research analyst at Bitget Wallet. Institutional funds are also returning. Data compiled shows that last week, thirteen U.S. spot Bitcoin ETFs saw a total net inflow of $1.92 billion, the largest single-week inflow since early October last year; on August 20 alone, the net inflow reached $606 million, marking a three-month high. The cryptocurrency market also received a boost from policy developments. On the day Bessent made his announcement, President Trump held a meeting with industry leaders, rekindling market optimism about government support for cryptocurrencies. Previously, the market structure bill, the Clarity Act, failed to enter the voting process before the Senate recess in August, causing a temporary slowdown in the legislative process. Trump urged the Senate to pass this bill, which is expected to be reconsidered in mid-September. The sharp rise in Bitcoin prices caught many traders off guard. According to Coinglass data, about $7.2 billion in leveraged short positions across the entire cryptocurrency market were liquidated last week. Cryptocurrency traders have been looking for a market bottom for months. Since hitting an all-time high last October, Bitcoin has been in a downtrend for much of 2026. However, skepticism remains in the market. Some analysts point out that this surge was primarily driven by short squeezes, and whether demand-side support can be sustained still needs to be observed.