Bitcoin tops $80,000, solana jumps 8% but rally now runs into overbought warning
Bitcoin surpassed $80,000 while other major cryptocurrencies like Solana and Ether saw significant gains, though technical indicators suggest the market may be overbought. The rally is partially attributed to Treasury Secretary Scott Bessent's bond repurchase plans, which have fueled investor interest in assets outside government control.
Why it matters
The surge in crypto prices reflects a growing 'debasement trade' sentiment, where investors seek hedges against potential currency devaluation amid U.S. fiscal policy shifts.
Positioning is getting stretched, meanwhile. Bitfire Research pointed to a widely watched momentum gauge which compared recent gains against recent losses on a scale of zero to 100, sitting near 78 for bitcoin.
Anything above 70 is usually read as a sign that a price has climbed too far too fast and is due a pause. Bitfire signals selling pressure between $78,500 and $82,000, and buyers likely to step in around $72,400 to $73,500, per a note sent to CoinDesk.
Solana led the majors, up almost 8% to just above $101 and almost 35% over seven days. Ether added over 2% to just under $2,500 and is up almost 32% on the week. BNB rose over 2% to just under $714. XRP gained almost 2% to just above $1.50 and leads all majors on the week at over 52%.
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