Gold and Bitcoin Surge as Dollar Weakens Amid US Debt Crisis

Investors are turning to gold and Bitcoin as concerns over U.S. government bonds and the dollar grow. The U.S. Treasury Department's decision to double its buyback of long-term government bonds from $2 billion to at least $4 billion per session has sparked a surge in these assets.

Gold prices have risen to $4,661 an ounce on the 21st, up from around $4,000 in June. Bitcoin has also jumped more than 20% in a week, surpassing $79,000 for the first time in about three months.

The move is seen as a response to growing anxiety over U.S. fiscal soundness and the value of the dollar. The national debt has surpassed $40 trillion for the first time in history, fueling demand for safe assets like gold and Bitcoin.

Bitcoin's price surge was also driven by a short squeeze, where investors who had bet on a fall in the price began buying back in to cut their losses. This led to a series of short squeezes that pushed prices further.