Bitcoin has climbed back above $80,000, trading at approximately $80,357, up 2.4% over 24 hours, 10.6% over seven days and 27.6% over the past month. Jurrien Timmer, director at Fidelity, believes sustained dollar weakness could become a significant tailwind for the cryptocurrency, as the Treasury announced on Aug. 19 that it would double its buybacks of long-term debt securities, which caused the dollar to weaken while gold and Bitcoin surged. Markets are beginning to price in a potential slippery slope toward fiscal dominance, in which the government’s financing needs increasingly constrain monetary policy. Timmer describes Bitcoin as potentially being in an accumulation phase, with the cryptocurrency seeking to catch up to gold in the broader debasement trade.
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