Bitcoin Tops $80,000 and Solana Rises 8% as Analysts Warn of Overheated Market

Bitcoin climbed above the psychological $80,000 threshold for the first time since May 2026, gaining more than 25% over the past week. According to CoinDesk, the rapid surge restored institutional interest in the market, though technical indicators have entered overbought territory, signaling the risk of a local correction.

The asset gained about 4% in a 24-hour period.

Drivers of the rally: Soft US Treasury policy and debasement trade

The main catalyst behind the buying spree was the US Treasury’s decision to expand its buyback program for long-term government bonds to bolster financial liquidity. According to Reuters, a weakening US dollar and falling Treasury yields fueled interest in the debasement trade strategy, as investors moved away from fiat currencies into supply-capped assets such as gold and Bitcoin.

The positive momentum was further supported by expectations around digital asset regulation legislation and consistent net capital inflows into spot exchange-traded funds (ETFs).

Solana leads gains on expectations of deflationary reforms

Outpacing the flagship cryptocurrency, the Solana (SOL) token jumped nearly 8% in 24 hours and more than 35% over the week, climbing above the $100 mark.

According to The Wall Street Journal, the token’s rally stems from a proposal by validators to overhaul the blockchain’s tokenomics, with developers considering reducing the issuance rate of new coins and increasing fee burn volumes.

Other altcoins also posted strong gains, with XRP surging over 50% on the weekly chart.

Overbought signals and price targets

Technical analysts advise caution: Bitcoin’s relative strength index (RSI) reached 78 points, indicating an overheated market above the safe zone of 70 points.

According to research firm Bitfire Research, key resistance for buyers lies between $78,500 and $82,000, while the nearest solid support level sits around $72,400 to $73,500.

If Bitcoin comfortably holds above $82,000, analysts say the upward trend could continue toward the $95,000–$100,000 mark. However, prices are still recovering from a prolonged downturn following the October 2025 all-time high of $126,000.