Bitcoin moved above $80,000 in Asian trading Tuesday, extending a rally that has pushed BTC more than 25% higher over the past seven days. Solana led the major cryptocurrencies, gaining nearly 8% as validators considered proposals that could slow new SOL issuance and increase daily token burns.
Bitcoin was up about 4% on the day after breaking through $80,000, taking its weekly advance above 25%. The latest leg of the rally followed the U.S. Treasury’s decision to expand its government bond buyback program.
However, the rapid climb has also raised concerns that Bitcoin may be entering overbought territory. Bitfire Research said a widely followed momentum indicator had reached approximately 78 on a 0-to-100 scale, measuring the balance between recent gains and losses.
Readings above 70 are generally viewed as overbought, indicating that an asset may have moved too quickly and could be vulnerable to a correction. Bitfire identified the $78,500-$82,000 range as a potential area for selling pressure, while support could emerge between $72,400 and $73,500.
SOL Leads the Major Tokens
Solana jumped almost 8% to above $101, bringing its weekly gain close to 35%. Ether added more than 2% to trade just below $2,500, while its seven-day increase reached nearly 32%.
BNB gained more than 2% to approach $714, while XRP rose nearly 2% to above $1.50. XRP has been the strongest major cryptocurrency over the past week, with gains exceeding 52%.
Solana’s advance comes as validators vote on two proposals that could reduce the rate of new token creation and increase SOL burns. One proposal seeks to slow new issuance, while the other could raise daily burns to as much as $800,000. Voting is expected to close Thursday.
Zcash extended its rally by more than 1% to around $846 and is now up approximately 66% over seven days, the strongest weekly performance among the top 12 tokens.
Dogecoin rose slightly to around 9 cents, putting its weekly gain at roughly 32%. Tron added about 0.5% to just under 35 cents and has gained around 4% over the week, making it the only major token with a single-digit weekly advance.
Hyperliquid’s HYPE was the only major cryptocurrency to post a decline, slipping slightly to around $81. Even so, the token remains up about 36% over seven days.
Treasury Policy Remains a Rally Catalyst
The crypto market’s latest surge has been partly linked to Treasury Secretary Scott Bessent’s plan to increase government bond repurchases. The announcement renewed the so-called debasement trade, in which investors seek scarce assets that could provide protection against currency depreciation.
Bessent offered no new details Monday and said the Treasury would continue its regular securities-sale program. He indicated that investors should not expect further changes before the next quarterly refunding announcement in November.
Morgan Stanley estimates that the Treasury could have between $80 billion and $200 billion in excess cash available for potentially larger buyback operations, according to interest-rate strategist Martin Tobias.
Investors are also preparing for Federal Reserve Chair Kevin Warsh’s appearance at Jackson Hole on Wednesday. It will be his first speech at the annual gathering since becoming Fed chair.
Jackson Hole speeches have historically been important for signaling shifts in monetary policy, making Warsh’s remarks a key event for markets.
Lower interest rates can benefit cryptocurrencies by reducing borrowing costs and encouraging investors to move toward higher-risk assets. Higher rates can pressure crypto by making government bonds more attractive.
Beyond monetary policy, traders are also watching the procedural vote on the Clarity Act, the SEC’s crypto framework consultation, the September Fed meeting, PCE inflation figures and upcoming jobs data.
