Bitcoin News: ETF Demand and Short Covering Power August Rally

Bitcoin rose above $80,000 today, reaching more than a three-month high as softer U.S. dollar news revived momentum in the crypto sector. The cryptocurrency was last trading at $80,300 after touching $81,200.

It had risen 16% since the prior week.The move has drawn attention to two forces behind the rally: demand through U.S. spot Bitcoin exchange-traded funds and the unwinding of bearish positions as prices climbed.Bitcoin (BTC)24h7d30d1yAll timeThis month, the U.S.

Treasury doubled its support for longer-dated government bonds, increasing its buyback program from $2 billion to $4 billion.

The move does not directly expand the money supply, but it may put downward pressure on long-term yields and can be viewed by markets as having an easing-like effect.The announcement helped revive discussion of the debasement trade, in which investors seek assets seen as protection against a weaker dollar, persistent deficits, and inflation.