Treasury's Surprise Move Ignites Fire Under Bitcoin and Gold

Bitcoin and gold surged this week after the US Treasury Department announced plans to significantly increase its buybacks of long-term Treasurys, or government debt. The move was intended to calm bond markets but raised questions about whether the government is trying to push borrowing costs lower despite inflationary pressures.

The news sparked a dollar sell-off and a jump in the value of gold and bitcoin as investors moved toward alternative assets. Gold rose above 2% on Wednesday, while bitcoin blasted through its upper price range of $67,000 after Treasury yields fell.

President Donald Trump also weighed in on the crypto market this week, calling on Congress to pass the crypto-friendly Clarity Act during a conference at the White House. The bill aims to ease regulations for crypto companies and projects, making it easier for them to raise money from the public.