Bitcoin surged to a three-month high of $80,760 on Tuesday as investors shifted toward cryptocurrencies amid growing concerns regarding U.S. fiscal policy and potential dollar debasement.

Key Points

• Bitcoin climbed 4.7% to reach $80,760, marking its strongest performance in over three months.
• The rally triggered over $457 million in Bitcoin short liquidations and $112.3 million in Ether liquidations within 24 hours.
• Market sentiment shifted following the U.S. Treasury’s announcement to increase bond buybacks, fueling fears of currency instability.
• Major altcoins followed the trend, with Solana rising 7.6%, while Ether, XRP, and BNB also recorded gains.
• Bitcoin has now posted gains in eight of the past nine trading sessions as bearish traders exit the market.

Why it Matters

The rally highlights a growing investor preference for alternative assets as a hedge against perceived instability in U.S. government bond and currency markets. This shift suggests that fiscal policy concerns are increasingly influencing capital allocation strategies across both traditional and digital asset classes.