Can Bitcoin extend gains above $80K as the debasement trade gains traction?

Bitcoin has jumped above $80,000 to a three-month high, extending last week's rally as improving liquidity expectations, growing concerns over U.S. fiscal health, regulatory optimism and stronger institutional demand continue to support the cryptocurrency. 

Bitcoin is up 3% over the past 24 hours, taking its seven-day gains to 24%. The broader crypto market is also moving higher, with total market capitalisation up 2.8% to $2.68 trillion.

The latest move follows last week's 20% surge, Bitcoin's strongest weekly performance in almost three years. The initial catalyst was the U.S. Treasury's decision to increase its buybacks of longer-dated government bonds, while President Trump's renewed push for the Clarity Act added a crypto-specific boost.

The question is whether BTC can extend gains above the 80k level?

Liquidity and the debasement trade

The Treasury's decision to roughly double its long-dated bond buybacks helped contain the sharp rise in Treasury yields seen earlier this month. However, the move also raised questions over the U.S. fiscal outlook. With government debt now above $40 trillion, some investors see the intervention as another sign that Washington is unwilling to do the hard work of addressing its longer-term borrowing problem. 

That has helped revive the debasement trade, pressuring the dollar while supporting alternative assets such as gold and Bitcoin. This is particularly relevant for Bitcoin given its original appeal as an alternative to fiat currencies and concerns over central bank money creation. 

Institutional demand remains strong 

The fundamental backdrop is being reinforced by institutional flows. 

U.S. spot Bitcoin ETFs recorded $337.6 million in net inflows on Monday, marking a sixth consecutive day of positive flows and taking the cumulative total over that period to $2.26 billion. Last week alone, ETFs attracted $1.92 billion, their strongest weekly inflow since October. 

Should BTC ETF demand continue, this could absorb supply and support the BTC price higher. 

However, sentiment is also becoming much more bullish. The Crypto Fear & Greed Index has remained in Greed territory since Thursday and has risen to 74, its highest level since October 2025. 

That supports momentum, but it also means the market is more vulnerable to profit-taking if the macro backdrop turns. 

Can Bitcoin break higher? 

The next major test is whether Bitcoin can sustain a move above $80,000 rather than simply spike through the level. Attention will now turn to U.S. core PCE inflation and Fed Chair Kevin Warsh's speech at Jackson Hole, both of which could influence Treasury yields, the dollar, and interest-rate expectations.

A softer inflation reading and a cautious Warsh would reinforce liquidity and debasement trade, potentially opening the door to further gains. A hotter PCE reading or hawkish Fed signal could push yields and the dollar higher, making $80,000 a much tougher level to hold. 

Bitcoin technical analysis  

BTC/USD broke out above the 50 EMA and the falling trend aligned before powering higher above the 200 EMA to a three-month high of 81.2K. The price has since eased back below 80k, with a longer upper wick, which is a reason for caution, and the RSI is considerably overbought, so a period of consolidation could be on the cards.  

Buyers will need to settle above 80k to bring 82k, the May high, into focus. A rise above here creates a more bullish outlook, bringing 90k and 95k.  

On the downside, support is seen at 77.5K, the 78.6% Fib level of the 82.8K high and the 57.7K low. Below here, attention turns to 73.4K, the 61.8% Fib level, and the 200 EMA at 71.8K. Below here, bringing 70k into focus. The July high negates the near-term uptrend.  

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