Treasury Intervention Sends Bitcoin, Gold Prices Soaring

Bitcoin and gold prices surged this week after a flurry of activity surrounding the bond market and Washington. The price of Bitcoin rose above $77,000 on Friday, more than 20% higher than its value just days prior.

The sudden increase can be attributed to several key developments. On Wednesday, the U.S. Treasury Department announced plans to significantly increase its buybacks of long-term Treasurys, or government debt, in an effort to calm bond markets.

President Donald Trump also weighed in on cryptocurrency regulation, calling on Congress to move quickly on a crypto-friendly bill known as the Clarity Act. Commodity Futures Trading Commission Chair Mike Selig vowed to use every tool available to advance Trump's agenda.

The Treasury's actions negatively affected the money investors could make on U.S. bonds and the dollar, boosting the value of Bitcoin in the process. Many investors who had shorted Bitcoin were forced to close their positions as its price surged, adding even more upward pressure.