Bitcoin passes $80,000 as US Treasury move fires up crypto rally

Bitcoin tops $80,000 for first time since May

Bitcoin climbed above $80,000 on Tuesday, August 25, 2026, reaching its highest level in more than three months after weakness in the US dollar and moves by the US Treasury to ease bond market pressure renewed appetite for cryptocurrencies, according to a Nairametrics report.

The world's largest cryptocurrency touched intraday highs around $81,220 to $81,257 before settling in the high-$70,000s to low-$80,000 range, Straits Times and Yahoo Finance reported.

The rally marked Bitcoin's best weekly performance in roughly three years, with gains of 23% to 27% over a five-to-seven-day stretch, according to Crypto.com's market update.

Treasury buybacks and a weaker dollar

The immediate trigger was the US Treasury's announcement that it would roughly double the pace of long-dated bond buybacks, increasing certain operations from $2 billion to $4 billion per operation in the 10- to 30-year maturity sector. Treasury Secretary Scott Bessent announced the expanded plan, which analysts described as "QE Lite," according to Investing.com and Business Times Singapore.

The buyback plan pushed long-term Treasury yields lower — the 30-year yield dropped roughly 10 basis points after earlier topping 5.33%, a 19-year high — and dragged the US dollar to a three-month low. That combination improved financial liquidity and risk sentiment, fueling a "debasement trade" in which investors rotate into assets seen as hedges against currency weakening and fiscal risk, including Bitcoin and gold.

US-listed Bitcoin ETFs recorded their strongest inflows in about 10 months during the rally, tightening available Bitcoin supply and amplifying the upward price move, according to Straits Times.

Short sellers pay the price

The breakout triggered heavy liquidations across crypto derivatives markets. Between $2.7 billion and $3 billion in bearish bets were wiped out as Bitcoin broke through multiple resistance levels from the low-$60,000s toward $80,000, Crypto.com reported.

"Market exuberance returned to cryptocurrencies when US Treasury Secretary Scott Bessent announced Wednesday the department would at least double the size of its long-dated bond buybacks, triggering an upswing that forced traders to liquidate billions in short positions," said Rachael Lucas, analyst at BTC Markets, in Nairametrics coverage.

Lacie Zhang, research analyst at Bitget Wallet, framed the shift as a macro inflection: "The macro backdrop turned more supportive after the Treasury's expanded long-dated buyback plan helped weaken the dollar and revive the 'debasement trade' across Bitcoin and gold," she told Straits Times.

A macro story with Nigerian resonance

The rally is primarily a US macro and policy-driven move, not a crypto-native catalyst. The backdrop includes the US national debt crossing $40 trillion and renewed investor concern over fiscal health, according to Yahoo Finance. For Nigerian readers, the story resonates because many local investors use Bitcoin and stablecoins as hedges against naira depreciation and foreign exchange restrictions.

Nairametrics' decision to syndicate the story signals a deliberate effort to connect its audience to global macro developments — including US Treasury mechanics and dollar weakness — that ripple through African FX markets, funding conditions, and investor risk appetite. The report does not mention Nigerian regulators or exchanges directly, but local platforms such as Quidax, Yellow Card, and Luno typically see heightened user activity around globally covered price milestones like a break above $80,000.

OCBC analysts captured the shift in market narrative: "The Treasury's buyback announcement has shifted the market narrative from higher yields to USD debasement – fuelling a weaker USD, stronger gold and higher breakevens," they told Investing.com.

What to watch next

The immediate question is whether Bitcoin can hold above $80,000 or slips back into the high-$70,000s, where it stabilised after Tuesday's peak. Traders will watch US Treasury yield movements, the dollar index, and whether ETF inflows continue at the pace seen over the past month. A sustained rally could improve fundraising prospects for African crypto and web3 startups, though that outcome depends on broader market conditions rather than any single price level.