Bitcoin Soars to $81,165 as Gold Hits 27-Year High

Bitcoin's price surged to $81,165 on Tuesday before settling at $80,792, up 4.5% in 24 hours, as gold pushed to its highest level since mid-May. Both assets are riding a wave of momentum driven by the weakening US dollar and falling bond yields.

The US Dollar Index has dropped 0.8% this month, making dollar-priced gold cheaper for foreign buyers, while Treasury yields have remained elevated through most of August but were tempered slightly by the government's bond buyback plan. This shift in market dynamics is sending investors flocking to safe-haven assets like Bitcoin and gold.

Gold has gained 0.6% to $4,677.19 per ounce on Tuesday, its best level since mid-May, with the metal up around 13% so far this month. UOB analysts note that this month's rally is gold's best monthly performance since 1999, a feat last achieved in September of that year when European central banks capped their gold sales.

Bitcoin has also benefited from a weaker dollar and falling bond yields, briefly losing the $80,000 level last week before reclaiming it and pushing higher. Strive executive's recent comments pointing to Bitcoin's breakout against gold as evidence the asset's bear market has ended have added fuel to the fire.