The price of bitcoin punched back above $80,000—its highest level since May—as the flagship cryptocurrency logged its strongest three‑day rally since 2023.
Over the past three trading sessions, bitcoin has surged about 20 percent.
Since peaking at an all-time high of $124,000 in September 2025, bitcoin has been entrenched in a prolonged slump. Bitcoin, which accounts for 60 percent of the crypto market, fell as low as $58,000 in June before clawing its way back to a three-month high.
Bitcoin’s comeback also boosted alternative coins.
Ether reclaimed $2,500 after advancing more than 30 percent in the past week. Solana also jumped 35 percent to above $100. Cardano, Dogecoin, and XRP have also risen by more than 30 percent over this period.
Market watchers have cited various factors behind the latest run, including the “debasement trade.”
“There was strong demand for ’scarce’ assets last week,” Tom Essaye, president and co-founder of the Sevens Research Report, said in a note emailed to The Epoch Times.
Gold also edged up about 5 percent to around $4,700 per ounce, benefiting from safe-haven demand and a weaker U.S. dollar, which has pared its year-to-date gains in half.
“The upside standout proved to be in the cryptocurrency space as Bitcoin ripped higher by +22.40% on the week, a nod to the ‘debasement-trade,’” Essaye added. “Put simply, capital continued to rotate away from market leadership and into traditionally safer corners of the market which typically offer a hedge against both inflation and growth.”
Yields on long-dated Treasury securities have soared this month. The 30-year yield topped 5.31 percent last week, its highest level since June 2007, prompting Washington’s intervention through expanded debt buybacks.
Inflation, fiscal fears, debt issuance, and competition for corporate debt in the artificial intelligence sector have all been cited as factors behind higher government bond yields.
Bitcoin has also benefited from a convergence of catalysts, according to analysts at Bitfire Research.
The Securities and Exchange Commission unveiled a new digital asset regulatory framework that produces a “clear and fit-for-purpose framework for certain investment contracts involving crypto assets.”
“Regulation Crypto Assets seeks to provide crypto asset entrepreneurs and market participants with clear pathways to raise capital under the federal securities laws,” SEC Chairman Paul Atkins said in an Aug. 18 statement.
President Donald Trump also urged Congress to pass the Clarity Act, key legislation that would implement a new set of regulations.
Strong institutional spot buying also lifted bitcoin. Wall Street purchased almost $2 billion in bitcoin exchange-traded funds—also known as ETFs—last week, representing the biggest weekly inflow since October. Conversely, more than $4 billion in leveraged short positions were liquidated.
“In summary, improved regulatory expectations, falling long-end yields releasing liquidity, the one-time clearing of overcrowded shorts, and capital rotation from AI — multiple conditions converged to fuel this rally,” they said in an emailed note to The Epoch Times.
“The market’s price action reflects bitcoin’s acute sensitivity to predictable regulatory frameworks.”
Crypto-related stocks, meanwhile, have also picked up gains in the past week.
Shares of mobile software firm Strategy and crypto exchange Coinbase Global have each climbed more than 20 percent. Public asset manager Strive has rocketed close to 50 percent since Aug. 17.
Debt Crisis
The Treasury’s debt buyback announcement last week could signal an upcoming debt crisis, says Ray Dalio, a billionaire investor and the founder of Bridgewater Associates.
To prepare for potential trouble, Dalio urged retail investors to start owning cryptocurrencies and gold.
“I am confident that the government’s financial condition is at an inflection point,” Dalio wrote in a LinkedIn post published on Aug. 21. “If this is not dealt with now, the debts will build up to levels where they can’t be managed without great trauma.”
He warned that servicing the debt and repaying the principal will only increase over the years.
The national debt reached $40 trillion last week and is set to hit $50 trillion as early as 2029. The federal government reported a budget deficit of more than $400 billion in July. Interest costs are now one of the largest budgetary items and are poised to surpass $1 trillion by the end of fiscal year 2026 (Sept. 30).
Travis Gillmore and Kimberly Hayek contributed to this report.
