Treasury Intervention Sends Bitcoin and Gold Soaring
Bitcoin and gold prices surged last week, driven by investors fleeing to alternative assets amid market volatility.
The price of Bitcoin broke above $77,000 on Friday, a significant rebound from its January high of around $95,000, while gold reached $4,661 on the same day after dropping to around $4,000 in June.
The catalyst for this rally was the Treasury Department's announcement that it would significantly increase its buybacks of long-term Treasurys, or government debt. This move, intended to calm bond markets, had an almost immediate reaction: a dollar sell-off and a jump in the value of gold and Bitcoin as investors sought safer havens.
President Donald Trump's call for Congress to pass crypto-friendly legislation also contributed to Bitcoin's surge, with its price blasting through the $67,000 level after Treasury yields fell and the dollar weakened.