Last Updated on 26/08/2026
Bitcoin remained above $78,000 on Tuesday after briefly climbing to a three-month high, as concerns over the health of U.S. government finances weakened the dollar and encouraged investors to increase exposure to cryptocurrencies.
The world’s largest cryptocurrency was little changed at $78,740.1 by 18:06 ET (22:06 GMT), after touching $81,220.4 earlier in the session. Bitcoin gained more than 22% last week, marking its strongest weekly performance since March 2023.
Bitcoin Rally Gains Momentum as U.S. Bond Buybacks Raise Debasement Concerns
Bitcoin’s recent rebound has been driven largely by growing concerns about U.S. fiscal conditions and the longer-term outlook for the dollar.
Investor worries intensified after the U.S. Treasury announced plans last week to nearly double the pace of its bond buybacks in an effort to contain rising Treasury yields.
The move raised concerns that increased government intervention in the bond market could undermine the dollar, fueling what has become known as the “debasement trade.”
OCBC analysts noted that the Treasury’s buyback plans have shifted the market narrative away from rising yields and toward concerns about dollar debasement. This has contributed to a weaker U.S. dollar, stronger gold prices and higher inflation expectations, while increasing uncertainty over policy and the Federal Reserve’s independence has added further pressure on the greenback.
As a result, investors have increasingly moved into gold and cryptocurrencies, which are viewed as relatively insulated from turmoil in traditional bond markets.
Bitcoin has been a major beneficiary of this trend, while its weak performance earlier in the year has also attracted bargain hunters looking to capitalize on the sharp rebound.
Bitcoin Rally Triggers $457 Million in Short Liquidations
Bitcoin’s rapid recovery has also triggered a wave of short-position liquidations.
According to Coinglass data, more than $457 million worth of Bitcoin short positions were liquidated over the past 24 hours. The surge follows last week’s rally, when billions of dollars in Bitcoin shorts were wiped out as prices accelerated higher.
Other major cryptocurrencies also experienced significant liquidations, with Ether short positions worth approximately $112.3 million liquidated over the same period.
Crypto Prices Today: Altcoins Lose Momentum After Strong Rally
The broader cryptocurrency market pulled back on Tuesday as altcoins also paused following their recent gains.
Ether, the second-largest cryptocurrency by market capitalization, fell about 1% to $2,449.25, while XRP declined 2%.
Solana edged up 0.1%, whereas BNB and Cardano dropped 0.9% and 4.1%, respectively.
In the memecoin segment, Dogecoin fell 3.1%, while $TRUMP dropped 7.6%.
Overall, the crypto market appears to be taking a breather after a powerful rally, with Bitcoin remaining supported by renewed demand for alternative assets amid growing concerns over U.S. fiscal stability and potential dollar debasement.
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