Bitcoin rockets to highest level since May amid dollar weakness

Bitcoin climbed to its highest level since mid-May, extending a sharp rally that has pushed the cryptocurrency up 23% over the past week.

Bitcoin rose 2.8% to $79,588 on August 24. The weekly advance marks the digital asset’s strongest gain in three and a half years, Caliber.Az reports, citing Russian media.

The rally was supported in part by a weakening US dollar after the US Treasury Department announced plans to increase buybacks of longer-term government bonds. Treasury Secretary Scott Bessent later indicated that the purchases could be expanded further.

The prospect of increased Treasury activity and a softer dollar has contributed to renewed demand for risk-sensitive assets, including cryptocurrencies.

However, some market analysts remain cautious about the sustainability of the rally.

“The more Bessent tries to influence the market, the more the market resists,” said Marc Ostwald, Chief Economist & Global Strategist at ADM Investor Services.

By Vafa Guliyeva