Treasury Intervention Sends Bitcoin, Gold Prices Soaring
Bitcoin and gold saw significant price jumps this week after a series of events that boosted investor interest in alternative assets. The U.S. Treasury Department announced plans to increase its buybacks of long-term Treasurys, which caused a dollar sell-off and sent investors towards gold and bitcoin.
The Treasury's move raised questions about whether the government is trying to push borrowing costs lower despite inflationary pressures. This maneuver could handcuff the Federal Reserve, which fights inflation by raising interest rates.
President Donald Trump also made headlines this week with his call for Congress to pass the crypto-friendly Clarity Act, saying it would 'keep us ahead of China, keep us ahead of everyone else.'
The price of bitcoin had been stuck between $62,000 and $67,000 for weeks, but investors seized on its weakness and bet that it would remain subdued. However, when Treasury yields fell and the dollar declined, bitcoin blasted through the upper level of $67,000.