Treasury Move Sends Bitcoin, Gold Prices Soaring in Shocking Week
Bitcoin and gold prices surged this week after a surprise move by the Treasury Department to increase its buybacks of long-term Treasurys, which sparked a dollar sell-off and sent investors flocking to alternative assets.
The Treasury's announcement on Wednesday, in conjunction with President Donald Trump's call for Congress to pass crypto-friendly legislation, set off a chain reaction that saw bitcoin rise above $77,000 and gold hit $4,661.
Trump, who made nearly $1.2 billion from his crypto businesses last year, urged Congress to move quickly on the Clarity Act, which would 'keep us ahead of China' in terms of cryptocurrency regulation.
The Treasury's actions, aimed at calming bond markets, raised questions about whether the government is trying to push borrowing costs lower despite inflationary pressures. This could potentially handcuff the Federal Reserve, which fights inflation by raising interest rates.