Bitcoin is on track to post a third consecutive weekly gain as traders seek refuge in safe-haven assets amid sharp volatility sweeping across equities, foreign exchange, and bond markets. So far this week, the cryptocurrency has advanced 4.6%, climbing as high as $82,272.31 overnight – its strongest level since May 11, when it peaked at $82,499.99. The latest trade sits at $81,151.10.

For much of this year, bitcoin has struggled, largely oscillating between $60,000 and $70,000 since early June. However, the digital asset broke above $70,000 in late August and has continued its upward trajectory since then. The so-called "debasement trade" has resurfaced – a strategy where traders move away from dollar-denominated assets and pivot toward alternative stores of value like cryptocurrencies and gold.

Where the momentum is coming from

Goldman Sachs digital assets executive director Domnika Nestakova noted in a research report on Thursday: "Bitcoin's price breakout in late August reignited the 'debasement trade' and renewed investor interest in the cryptocurrency. Following the U.S. Treasury's announcement of expanded long-term bond buybacks, long-end yields have fallen and the dollar has weakened, which has jointly lifted bitcoin and gold."

Other major cryptocurrencies have also moved in tandem. Ethereum hit an intraday high of $2,545.62 on Friday – its strongest level since August 27 – while Solana surged to roughly $105.70, marking a fresh price peak not seen since August 31.