Bitcoin Clears $80K While Solana Gains 8%, Raising Fresh Overbought Concerns

Bitcoin broke above $80,000 during Asian trading on Tuesday, extending a rally that has lifted the cryptocurrency by more than 25% over the past week. Solana was the standout among major tokens, gaining nearly 8% as validators weighed proposals that could reduce new SOL issuance and increase daily token burns.

BTC climbed roughly 4% over 24 hours after crossing $80,000, building on a rally that gained momentum after the U.S. Treasury announced a larger bond-buyback program.

The rapid rise has also pushed Bitcoin into potentially overbought territory. Bitfire Research said a closely watched momentum indicator had reached around 78 on a 0-to-100 scale, reflecting the strength of recent gains relative to losses.

A reading above 70 is commonly viewed as overbought and can signal that an asset has advanced too quickly. Bitfire sees potential resistance between $78,500 and $82,000, while buyers could provide support around $72,400-$73,500.

Solana Leads the Major Crypto Gains

Solana rose nearly 8% to trade above $101, taking its weekly gain to almost 35%. Ether advanced more than 2% to just below $2,500 and has gained nearly 32% over seven days.

BNB increased more than 2% to approach $714, while XRP added almost 2% to trade above $1.50. XRP has recorded the biggest weekly gain among major cryptocurrencies, rising more than 52%.

Solana’s move comes as validators vote on two proposals that would potentially reduce the token’s supply growth. One plan would slow the creation of new SOL, while another could increase daily burns to as much as $800,000. Voting is scheduled to end Thursday.

Zcash rose more than 1% to about $846 and has gained roughly 66% over the past week, the strongest performance among the top 12 tokens.

Dogecoin moved slightly higher to around $0.09, putting its weekly gain near 32%. Tron added about 0.5% to trade just below $0.35 and is up around 4% for the week.

Hyperliquid’s HYPE was the only major token in negative territory, slipping slightly to roughly $81. Despite the decline, it remains up about 36% over seven days.

Treasury Buybacks Fuel Fresh Risk Appetite

The crypto market’s latest rally has been partly attributed to Treasury Secretary Scott Bessent’s plan to expand government bond buybacks. The announcement revived the so-called debasement trade, which involves shifting into scarce assets as a potential hedge against currency depreciation.

Bessent offered no further details Monday, saying the Treasury would stick with its regular securities-sale program. Additional changes are not expected until the next quarterly refunding announcement in November.

Morgan Stanley estimates the Treasury could have between $80 billion and $200 billion in excess cash that could potentially be used for larger buybacks, according to interest-rate strategist Martin Tobias.

Attention is also turning to Federal Reserve Chair Kevin Warsh, who is scheduled to speak at Jackson Hole on Wednesday. The event will mark his first appearance there since becoming Fed chair.

Fed chair speeches at Jackson Hole have historically been closely watched for clues about future monetary policy. Lower interest rates tend to support risk assets by reducing borrowing costs, while higher rates can encourage investors to favor government debt over more speculative assets.

Markets are also awaiting the Clarity Act procedural vote, developments around the SEC’s crypto framework, the September Fed meeting, PCE inflation figures and upcoming jobs data.