Bitcoin held above $80,000 on Tuesday after briefly touching $81,000, extending a rally that Treasury bond buybacks and a weakening dollar helped ignite. The move flipped Michael Saylor's Strategy from a $9.5 billion unrealized loss to a $4.7 billion paper profit in a week, while analysts remain split on whether the surge marks a genuine bull market or a catch-up trade.
Bitcoin broke to a multi-month high on Monday, briefly touching $81,000 before retreating and holding above $80,000. The advance extends a rally that has now pushed the Crypto Fear & Greed Index to an "Extreme Greed" reading of 83.
A weakening dollar feeds the debasement trade
The rally accelerated after the U.S. Treasury unveiled plans to roughly double its pace of bond buybacks to cap rising yields. That move stoked fears the dollar would absorb the strain, sparking what traders call the "debasement trade," and pushed investors toward gold and cryptocurrencies as a hedge against bond-market stress.
Bitcoin rose 4.7% to $80,760.8 on Tuesday, briefly hitting a three-month high of $81,220.4. The rebound also triggered more than $457 million in short position liquidations over 24 hours, according to Coinglass data cited by Investing.com.
Strategy swings from red to green
Michael Saylor's Strategy swung from an unrealized loss of more than $9.5 billion to a paper profit above $4.7 billion in seven days, as bitcoin climbed from the low $60,000s past $80,000. The firm's 840,477 BTC were bought at an average price of $75,385, keeping the position sensitive to further price swings.
Strategy has not bought or sold bitcoin during the rebound. However, it did sell 18.26 million MSTR shares for $2.01 billion, and its regular USD reserve grew to $5.1 billion.
Analysts split on whether this is a bull market
Bitcoin's weekly advance of more than $16,000, alongside renewed spot ETF inflows, is strengthening the case for a sustained rally. Ether rose 32%, XRP gained 53%, and Solana climbed 34% over the same stretch. According to The Block, Arctic Digital's head of research Justin d'Anethan said: "It's early, but one can't help but feel optimistic."
Yet several analysts urged caution, citing tight liquidity, sticky inflation, and geopolitical uncertainty as risks that still weigh on the market. Jeff Mei, COO of BTSE, said he would presume a bull market only after bitcoin sustains $100,000 for a month and the Fed signals rate cuts, which are still uncertain.
Sources: The Block, Investing.com, CryptoPotato
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