A renewed push for aggressive bond buybacks by the US Treasury Secretary has reignited the "debasement trade" narrative, fueling a powerful rally across the crypto complex. This macro backdrop, which favors holding assets outside government control to hedge against currency devaluation, provided the catalyst for the latest surge in digital assets.
During Tuesday's Asian trading session, Bitcoin climbed above the $80,000 threshold, marking a 4% gain on the day and pushing its weekly advance past 25%. However, Bitfire Research cautions that the momentum oscillator, which measures the speed of price changes, has jumped to 78 on a scale of 0 to 100. Readings above 70 typically signal that the asset has appreciated too quickly and is vulnerable to a pullback.
The research also highlights that Bitcoin faces significant selling pressure in the $78,500 to $82,000 zone, while robust buying support is clustered between $72,400 and $73,500. Structurally, this high-level consolidation suggests that while bullish momentum remains intact, short-term profit-taking pressure is building, leaving market sentiment torn between extreme optimism and technical overbought conditions.
Data compiled by Woofun AI shows a mixed performance across major and altcoin assets, with Solana leading the charge. SOL surged nearly 8% to break above the $101 mark, bringing its weekly gain to approximately 35%. The rally is underpinned by validator voting on two proposals aimed at reducing token supply: slowing the issuance of new tokens and raising the daily burn rate to $800,000. The vote is scheduled to conclude on Thursday.
Ethereum added more than 2%, trading just below $2,500, with a weekly gain of close to 32%. BNB also rose over 2%, hovering just under $714. XRP climbed nearly 2% to sit just above $1.50, recording a weekly advance exceeding 52% to become the best performer among major tokens. Zcash gained more than 1% to reach $846, up 66% on the week, placing it among the top performers. Dogecoin advanced 32% on the week to 9 cents, while Tron edged up 0.5% to just under 35 cents, posting a modest 4% weekly gain and standing as the only major token without double-digit growth. Hyperliquid's HYPE index price slipped slightly to $81 but still managed a 36% weekly increase.
The key variable moving forward remains the macro policy trajectory. The Treasury Secretary stated on Monday that no changes to bond sale plans would be made before the next quarterly refunding announcement in November, though rate strategist Martin Tobias estimates the Treasury holds between $80 billion and $200 billion in idle funds available for buybacks.
Fed Chair Kevin Warsh is scheduled to speak on Wednesday at the Jackson Hole symposium in Wyoming, marking his first address at the event since taking office. Such speeches have historically been harbingers of policy shifts. Additionally, the procedural vote on the Clarity Act, the SEC's regulatory framework consultation, the September Fed meeting, PCE inflation data, and employment figures will all serve as critical determinants for market direction in the coming weeks.