Bitcoin pushed above $80,000 during Asian trading on Tuesday, extending a rally that has lifted the cryptocurrency more than 25% over the past week. Solana outperformed other major tokens as network validators voted on proposals aimed at slowing new SOL issuance and increasing daily token burns.
BTC rose roughly 4% on the day to trade above $80,000, taking its seven-day gain beyond 25%. The move extends a rally that gained momentum after the U.S. Treasury announced an expansion of its government bond buyback program.
Still, technical indicators suggest the rally may be entering overheated territory. Bitfire Research said a closely followed momentum indicator for Bitcoin had reached about 78 on a scale of 0 to 100. The indicator compares recent price gains with recent losses.
A reading above 70 is generally considered overbought and can indicate that an asset has advanced too quickly. Bitfire expects potential selling pressure around $78,500 to $82,000, while buyers could emerge near $72,400 to $73,500, according to a note provided to CoinDesk.
Solana Leads the Crypto Market
Solana gained nearly 8% to trade above $101, lifting its weekly advance to almost 35%. Ether climbed more than 2% to just under $2,500, while its seven-day gain approached 32%.
BNB added more than 2% to trade near $714, and XRP increased almost 2% to above $1.50. XRP has been the strongest major cryptocurrency over the past week, rising more than 52%.
Solana’s latest move comes as validators consider two proposals that could reduce the token’s overall supply. One would lower the rate of new SOL issuance, while another would increase daily token burns to as much as $800,000. The voting process ends Thursday.
Zcash also continued its strong advance, rising more than 1% to about $846. The token is up roughly 66% over seven days, making it the best weekly performer among the top 12 cryptocurrencies.
Dogecoin rose slightly to around $0.09 and is up about 32% over the week. Tron gained around 0.5% to trade just below $0.35, recording a roughly 4% weekly increase and becoming the only major token with a single-digit weekly gain.
Hyperliquid’s HYPE was the only major token to decline, slipping slightly to around $81. Despite the drop, HYPE remains up approximately 36% over the past seven days.
Treasury Buybacks Remain a Key Market Driver
The latest crypto rally has partly been attributed to Treasury Secretary Scott Bessent’s plan to increase bond repurchases. The announcement renewed interest in the “debasement trade,” which involves buying scarce assets outside direct government control as protection against potential currency depreciation.
Bessent provided no fresh details Monday, saying the Treasury would maintain its regular securities-sale schedule. He indicated that investors should not expect additional changes until the next quarterly refunding announcement in November.
Morgan Stanley estimates the Treasury could have between $80 billion and $200 billion in available cash that might be used for larger buybacks, according to interest-rate strategist Martin Tobias.
The market is also preparing for Federal Reserve Chair Kevin Warsh’s speech at Jackson Hole on Wednesday. It will be his first appearance at the annual gathering since taking over as Fed chair.
Jackson Hole has historically served as an important venue for central bank officials to signal potential changes in monetary policy, making Warsh’s remarks a closely watched event for traders.
Lower interest rates generally benefit risk assets such as cryptocurrencies by reducing borrowing costs and encouraging investors to seek higher returns. Higher rates can pressure these assets by making safer government securities more attractive.
Other major catalysts ahead include the procedural vote on the Clarity Act, the SEC’s crypto regulatory framework consultation, the September Fed meeting, PCE inflation data and upcoming employment figures.
