Bitcoin surged above $80,000 on Tuesday, reaching its highest level since May and bringing its gains since mid-August to about 28%. The move was fueled by a series of positive signals, including renewed interest in the “debasement trade” after the US Treasury announced plans to increase purchases of longer-dated government bonds, weighing on long-term yields and the dollar. US spot Bitcoin ETFs also recorded their strongest weekly inflows in 10 months, attracting $1.92 billion, while expectations of continued support for cryptocurrency from the Trump administration added to demand. The advance triggered a major short squeeze, with about $7.2 billion in leveraged bearish crypto positions liquidated last week. Despite the rebound, Bitcoin remains well below its record high of around $126,000 reached last October, while analysts caution that the move may be driven largely by short covering rather than sustained demand.