Bitcoin and Gold Soar as Treasury Department Intervenes in Bond Market

Bitcoin and gold made significant gains this week, rising above their previous lows after a slump earlier in the year. Bitcoin had dropped from a January high of around $95,000 to below $60,000 at the end of June due to investors shying away from speculative assets. The cryptocurrency's supporters were also concerned about the lack of movement on proposed regulation of the industry.

On Friday, bitcoin rose above $77,000, while gold hit a high of $4,661 after dropping to around $4,000 in June as rising rates made interest-bearing investments more attractive.

The surge was triggered by frantic action surrounding the bond market, with the Treasury Department announcing plans to significantly increase its buybacks of long-term Treasurys. This move had an almost immediate reaction, including a dollar sell-off and a jump in the value of gold and bitcoin as investors moved toward alternative assets.

President Donald Trump's call for Congress to pass the crypto-friendly Clarity Act also contributed to the surge in cryptocurrency prices. Trump, who banked nearly $1.2 billion from his crypto businesses last year, urged lawmakers to act quickly on crypto legislation during a crypt conference at the White House.