Bitcoin Reaches $81,300, Hitting a Three-Month High

Maintaining the upward momentum that started last week, Bitcoin temporarily reached $81,300 on Tuesday before experiencing a balancing process around $78,600.

Upward Momentum and Bond Steps

Maintaining the upward momentum that began last week, Bitcoin hit a three-month peak, briefly reaching $81,300 on Tuesday before giving back some of its gains and stabilizing around $78,600. This rally was influenced by growing concerns regarding the U.S. fiscal outlook and increasing worries over the long-term value of the dollar.

The U.S. Treasury Department's announcement last week that it would nearly double long-term bond buybacks shifted market expectations. Aimed at limiting the rise in bond yields, this move brought concerns over the U.S. rising debt burden back to the agenda.

Pressure on the Dollar and Analyst Comments

Stating that the Treasury's decision shifted the market's focus from high interest rates to the risk of the dollar losing value, OCBC analysts noted that analogies to monetary easing were exaggerated and emphasized that policy uncertainty and question marks regarding the Fed's independence increased the pressure on the dollar.

Liquidated Short Positions

Bitcoin's rapid surge put investors who took positions expecting a price drop in a difficult situation, and according to Coinglass data, over $457 million worth of Bitcoin short positions were liquidated in the last 24 hours. While the forced closure of short positions contributed to a further acceleration in the Bitcoin price rise, $112.3 million worth of Ether short positions were also liquidated during the same period.

Mixed Outlook in the Altcoin Market

As Bitcoin tested its three-month high, a more mixed outlook emerged in the altcoin market; Ether dropped 1.2% to $2,463, while XRP lost 2.6% and Cardano lost approximately 3%. Solana rose 2.3% while BNB moved sideways, and selling pressure stood out in meme coins with Dogecoin declining 2.3% and the loss in TRUMP reaching 7.5%.