Cryptocurrency markets surged during Asian morning trading hours on Tuesday, with Bitcoin breaking past the $80,000 mark. The leading digital asset posted a 4% gain on the day and has risen more than 25% over the past week. This broader market movement was initially sparked by the U.S. Treasury’s plan to expand its bond-buyback program, which reinvigorated investor interest in the debasement trade as a hedge against currency depreciation.
Despite the strong momentum, market indicators suggest the rally may be reaching a temporary limit. Bitfire Research highlighted that a key momentum gauge tracking recent gains against losses has reached a reading near 78 for Bitcoin. Readings above 70 typically indicate that an asset is overbought and due for a consolidation phase. According to Bitfire analysis, selling pressure is anticipated between $78,500 and $82,000, while substantial buying support is expected to emerge if prices pull back to the $72,400 to $73,500 range, CoinDesk reported.
Solana led gains among major altcoins, jumping nearly 8% to just above $101 and achieving a 35% gain over the last seven days. The advance comes as network validators vote on two supply-reduction proposals, one aimed at slowing new token issuance and another designed to increase daily token burns up to $800,000. Elsewhere in major tokens, Ether rose over 2% to near $2,500, BNB gained over 2% to approach $714, and XRP added almost 2% to cross $1.50. Zcash logged the strongest weekly performance among top tokens with a 66% gain, while Hyperliquid’s HYPE token stood as the sole decliner of the session.
Macroeconomic policy and upcoming central bank actions remain central to trader sentiment. Morgan Stanley estimates that the Treasury holds between $80 billion and $200 billion in spare cash that could be used for buybacks, though Treasury Secretary Scott Bessent signaled no immediate strategy changes ahead of November. Investors are now turning their attention to Federal Reserve Chair Kevin Warsh’s upcoming address at the Jackson Hole symposium, alongside pending regulatory developments including the Clarity Act vote and upcoming economic data releases.
