Bitcoin rose above $80,000 on Tuesday to reach its highest level in more than three months, as a weaker U.S. dollar and moves by the U.S. Treasury to calm the bond market boosted demand for cryptocurrencies.

Bitcoin reached $81,237.94 during Asian trading, its highest level since mid-May, before easing to $80,323.24. The cryptocurrency has gained 16% since President Donald Trump called on Congress last week to pass legislation providing clearer definitions for the cryptocurrency sector.

Bitcoin is up about 28% so far in August, putting it on track for its strongest monthly gain since November 2024.

Cryptocurrencies have also benefited from plans announced by Treasury Secretary Scott Bessent to increase buybacks of long-term U.S. government bonds in an effort to limit rising yields. The move has contributed to weakness in the U.S. dollar.

Tim Sun, senior researcher at HashKey Group, said the Treasury's actions had reinforced expectations that U.S. policymakers may have a lower tolerance for further increases in long-term bond yields.

He said this could create a supportive environment for assets such as bitcoin and gold. Gold also reached a three-month high as the dollar weakened.

Market analysts said the Treasury's bond-buyback plans have renewed interest in so-called "debasement trades," in which investors turn to physical and digital assets amid concerns about currency values.

Tony Sycamore, a market analyst at IG, said renewed demand for such assets could push bitcoin higher, with a sustained move above recent levels potentially opening the way toward $95,000 to $100,000.