Bitcoin Reclaims $80,000 as Treasury Auction and Bond‑Buyback Debate Fuels Rally

Bitcoin surged past the $79,000 resistance level on Thursday, briefly topping $80,800 before settling above $80,400. The move lifted the cryptocurrency’s market capitalization to roughly $1.61 trillion and set up the potential for a more than 20% monthly gain as August draws to a close.

Price Action and Market Impact

According to 24‑hour chart data, Bitcoin rose from under $77,900 to just above $79,000 on Wednesday night, then climbed to an intraday high of $80,808. After a brief dip below $79,000, buyers pushed the price back up, with a second leg reaching $80,500 before stabilising above $80,400 by midday. The 24‑hour gain was about 3%.

Liquidations and Short‑Position Losses

Volatility over the past 24 hours erased $105 million in leveraged Bitcoin positions, with short sellers bearing roughly $80 million of those losses. Across the broader digital‑asset market, short liquidations accounted for nearly 70% of the total $416 million wiped out.

Potential Treasury Auction Influence

Unconfirmed reports indicate the U.S. Treasury plans to auction $92 billion of three‑month bills on Aug. 31. Analysts note that a large auction can drain short‑term liquidity, potentially raising short‑term yields and applying temporary pressure on equities and crypto assets. The net effect will depend on issuance volume and bidder demand.

Bond‑Buyback Policy Debate

A report in The Economist criticised Treasury Secretary Scott Bessent’s policy of doubling bond‑buyback limits and shifting new debt issuance toward short‑term Treasury bills. The analysis argues that shortening the duration of government liabilities could increase vulnerability to interest‑rate spikes and rollover risk, while crowding out private‑sector financing.

Ray Dalio has suggested that these policies may lower the inflation‑adjusted return on traditional fixed‑income assets, prompting capital to seek alternative stores of value such as gold and Bitcoin, both of which have risen since the Treasury’s announcement.