Bitcoin Tops $80,000 as Overbought Signals Flash in Risk Rally

Bitcoin climbed above $80,000 during Asian trading on Tuesday, rising 4% on the day and more than 25% over the past week. The move extends a rally that gathered pace after the U.S. Treasury signaled plans to expand bond buybacks. Signs of stretched positioning are emerging. Bitfire Research flagged a closely followed momentum indicator that measures recent gains versus losses on a 0–100 scale, with bitcoin near 78. Readings above 70 are commonly viewed as "overbought," suggesting prices may have risen too far, too fast and could pause. In a note to CoinDesk, Bitfire said selling pressure is likely between $78,500 and $82,000, while buyers may re-emerge around $72,400 to $73,500. Among major tokens, Solana led gains, up nearly 8% to just over $101 and almost 35% over seven days. Ether added more than 2% to just under $2,500 and is up nearly 32% on the week. BNB rose over 2% to just under $714. XRP gained almost 2% to just above $1.50 and leads the major tokens over the week with a rise of more than 52%. Solana's rally comes as validators vote on two proposals aimed at reducing SOL supply, as CoinDesk reported. One would slow new issuance, and the other would increase daily burns to as much as $800,000. Voting closes Thursday. Zcash extended its run, up over 1% to $846 and 66% on the week, the strongest weekly performance among the top dozen tokens. Dogecoin ticked up to $0.09, bringing its weekly gain to 32%. Tron rose about 0.5% to just under $0.35, the only major token not posting a double-digit weekly gain at 4%. Hyperliquid's HYPE was the lone decliner, easing slightly to $81, though it remains up 36% on the week. The broader rally has been linked to Treasury Secretary Scott Bessent's plan to step up bond repurchases, reviving "debasement trade" chatter—the idea that holding assets outside government control can help protect against a currency losing value. On Monday, Bessent offered no additional details, saying the department will continue its regular sales program and signaling no changes before the next quarterly refunding announcement in November. Morgan Stanley estimates the Treasury has $80 billion to $200 billion in spare cash that could be used for larger buybacks, according to interest-rate strategist Martin Tobias. Attention now turns to Federal Reserve Chair Kevin Warsh, who is scheduled to speak at Jackson Hole on Wednesday in his first appearance there since taking the job. Central bankers meet at the Wyoming resort each August, and the chair's remarks have historically been used to telegraph policy shifts ahead of implementation, making the speech a market event in its own right. Lower rates tend to favor risk assets such as crypto by reducing borrowing costs, while higher rates support government debt yields and can pull money away from risk. Beyond Jackson Hole, traders are watching a procedural vote on the Clarity Act, the SEC's consultation on its crypto framework, the Federal Reserve's September meeting, and upcoming PCE inflation and payrolls data.