Bitcoin Tops $80,000 as Solana Rises on Supply Vote

The rally follows U.S. bond buybacks, while traders warn of overheating. For Solana, the move centers on a vote over lower issuance and higher burns.

Key Takeaways

• Bitcoin rose above $80,000 on Tuesday morning, up more than 4% on the day and more than 25% on the week.
• Solana climbed nearly 8% to just above $101, while validators vote on proposals meant to slow SOL issuance.
• Traders are watching macro and policy events this week, including Jackson Hole, the Clarity Act, the SEC meeting, and the Fed meeting in September.

Bitcoin rose above $80,000 (€68,600) on Tuesday morning in Asia, putting it more than 4% higher on the day and more than 25% higher on the week. The rally had already gotten support after the U.S. Treasury Department expanded its bond buybacks. At the same time, traders warn that the move has been fast and that the market now seems more sensitive to a pause.

Bitcoin Is Getting Overheated

Bitfire Research pointed to a widely used momentum indicator that recently sat around 78 for Bitcoin. Readings above 70 are often seen as a sign that a price has run too far, too fast, and may need a breather. In the same note, Bitfire mentioned selling pressure between $78,500 (€67,300) and $82,000 (€70,300), while buyers are likely to become more active again around $72,400 (€62,100) to $73,500 (€63,000), according to the company.

The move fits into a broader risk-on phase in the crypto market. Ether rose more than 2% to just under $2,500 (€2,140) and is up almost 32% on the week. BNB climbed more than 2% to just under $714 (€612), while XRP gained nearly 2% to a little above $1.50 (€1.29). That puts XRP at the top among major tokens on a weekly basis, with a gain of more than 52%.

Solana Votes on Supply

Solana was the strongest major gainer and rose nearly 8% to just above $101 (€87). The token is now almost 35% higher than a week earlier. The price jump came alongside a validator vote on two proposals meant to slow SOL issuance. One proposal lowers new issuance, while the other raises daily burns to as much as $800,000 (€685,900). The vote closes on Thursday.

Those proposals are part of a broader debate inside the Solana community about the inflation structure and transaction fees. For European crypto readers, that matters because changes in token supply and burns often directly affect how scarcity around a token is viewed, without that meaning a price direction is set.

More Eyes on Macro and Policy

Alongside the crypto-specific developments, traders are also watching macro and policy this week. Fed Chair Kevin Warsh speaks on Wednesday in Jackson Hole, where central bankers often give signals about the path for interest rates. Lower rates make borrowing cheaper and often push capital toward riskier assets like crypto, while higher rates tend to have the opposite effect.

Also on the calendar are the vote on the Clarity Act, the SEC meeting on the crypto framework, the Fed meeting in September, and new inflation and labor market data. That makes the next few days important for the broader crypto market, especially now that the recent rally is already showing signs of strain.