Bitcoin, Gold Soar as Bond Market Turmoil Sends Investors Fleeing

Bitcoin and gold have made significant gains this week, boosted by a surge in alternative assets as investors flee from US bonds. On Wednesday, the Treasury Department announced plans to double its buybacks of long-term Treasurys, sending bond yields lower.

This move caused concern among some analysts that it may handcuff the Federal Reserve, which fights inflation by raising interest rates. The national debt has surpassed $40 trillion, and investors are growing anxious about inflation due to factors like the conflict in Iran and soaring energy prices.

As a result, money invested in dollars or Treasurys appears to have been funneled into alternative assets like gold, which rose over 2% on Wednesday. Bitcoin has also benefited, jumping more than 20% this week.

President Donald Trump's call for Congress to pass the crypto-friendly Clarity Act and his urging regulators to move quickly on crypto legislation further boosted bitcoin's value. The price of bitcoin had been stuck between $62,000 and $67,000, but Treasury's actions sent yields falling, allowing it to blast through that upper level.