Dollar Weakness Lifts Bitcoin and Gold Amid Bessent Bond Market Intervention
The price of Bitcoin has surged nearly seven percent on Friday to around US$77,380, its highest level since May. This marks the cryptocurrency's best week in more than three years.
Gold also gained 1.5 per cent on Friday to about US$4,585 a troy ounce and is up over 13 per cent in August, putting it on track for its biggest monthly gain this century.
The rally comes after the U.S. Treasury announced on Wednesday that it would 'at least double' its purchases of long-term government debt. This move has weakened the dollar amid concerns over its purchasing power.
One commodities trader said Bessent's intervention has resulted in a strong boost to debasement-trade assets, particularly gold and Bitcoin.
Eoin Walsh, portfolio manager at TwentyFour Asset Management, attributed the dollar's depreciation to erratic and unpredictable policymaking.