The price of the largest cryptocurrency, bitcoin, has surpassed the $80,000 threshold for the first time since mid-May. Around 07:15 CEST, it showed an increase of 1.86 percent to $80,451.64. Following steps by U.S. Treasury Secretary Scott Bessent, who announced massive purchases in the bond market aimed at stabilizing it, growth resumed in the cryptocurrency sector, Reuters reported.
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Trump’s Crypto Boost and the Price Roller Coaster
U.S. President Donald Trump last week urged Congress to pass legislation that would bring clearer definition to the cryptocurrency sector. Since then, bitcoin’s value has risen by 16 percent.
Bitcoin reached a record high of over $126,000 in October last year before dropping to approximately $60,000 in February after a months-long decline. From then until mid-May, the cryptocurrency gradually managed to post gains and erase part of its losses, partly due to increased institutional demand, Bloomberg reported earlier. In early June, there was a major drop after investors took profits from bitcoin exchange-traded funds (ETFs).
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What’s Driving Crypto Up and Why Analysts Warn of Volatility
Recent price growth was also significantly aided by massive short squeeze among traders who had bet on a far-reaching market decline. Given bitcoin’s steep rise in value, they were forced to hastily buy back their positions, which pushed the price even higher. According to analysts, a key role was also played by renewed interest from institutional investors, who, after the June slowdown, began once again pouring new capital on a large scale into U.S. spot ETF funds.
Along with bitcoin, other major digital currencies also strengthened, led by ethereum, which likewise posted gains. However, analysts caution that while the current momentum has brought a new wave of optimism to the market, crypto assets remain highly volatile to macroeconomic news, and investors should expect the possibility of sharp price corrections.
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Source: ČTK
Photo source: Adobe Stock
