Bitcoin Nears $80,000 as Investor Optimism Resurges

Cryptocurrencies continued their rise in yesterday’s trading, with Bitcoin briefly approaching the $80,000 level, supported by a renewed appetite for risk among investors as the US Treasury Department moves to enhance liquidity in the bond market.

Bitcoin, the world’s largest cryptocurrency by market capitalization, is up approximately 22.6% so far this week, on track to record its largest weekly gains since March 2023.

Cryptocurrencies gained additional momentum after the liquidation of roughly $2.7 billion in short positions, according to CoinGlass data, while the White House and industry leaders pushed for the passage of a digital asset regulation bill in Congress.

Despite the recent gains, Bitcoin’s price remains below its year-to-date high of $94,820, set in mid-January, as well as its all-time peak of $126,198 recorded on October 6 of last year.

US billionaire and investor Ray Dalio stated that the US Treasury’s announcement of bond purchases this week is part of a broader pattern that may signal an approaching debt crisis.

According to a report published by CNBC and reviewed by Al Arabiya Business, the founder of Bridgewater Associates advised investors to increase their portfolios’ exposure to gold and Bitcoin amid rising risks associated with US debt. Dalio recommended that investors reduce the weight of debt assets, such as bonds, in their investment portfolios.

The hedge fund manager said that gold could account for about 10% to 15% of an investment portfolio, alongside holding a “small amount” of Bitcoin.