Bitcoin Surges 20% as Investors Flee Dollar Amid Treasury Intervention
The value of Bitcoin and gold surged this week as investors fled the US dollar in response to the Treasury Department's surprise announcement to increase its buybacks of long-term Treasurys.
The move aimed to calm bond markets, but it also raised concerns about inflationary pressures. The national debt surpassed a record $40 trillion on the same day the announcement was made.
President Donald Trump called on Congress to pass the crypto-friendly Clarity Act, saying it would 'keep us ahead of China.' This came as other regulators proposed rules making it easier for crypto companies and projects to raise money from the public.
The price of Bitcoin had been stuck between $62,000 and $67,000 for weeks. On the day of the Treasury announcement, yields on US bonds fell, and the dollar declined, causing Bitcoin to blast through the upper level of $67,000.