Treasury's Surprise Move Sends Gold and Bitcoin Prices Soaring
The Treasury Department's surprise announcement to significantly increase its buybacks of long-term Treasurys sent shockwaves through financial markets, causing a sharp decline in the US dollar and a surge in gold and Bitcoin prices.
Bitcoin had been stuck between $62,000 and $67,000 for weeks, but after the Treasury's announcement, it blasted through that upper level of $67,000. The price of Bitcoin rose more than 20% this week, while gold jumped over 2% on Wednesday.
The move was seen as a sign that the government is trying to push borrowing costs lower despite inflationary pressures, which raised questions about whether the Treasury Secretary's maneuver could handcuff the Federal Reserve. The national debt surpassed $40 trillion on the same day, adding to concerns about inflation and the value of the US currency.
President Donald Trump, who has pushed policies friendly to the crypto industry, held a cryptocurrency conference at the White House where he called on Congress to pass the Clarity Act. The CFTC also proposed rules making it easier for crypto companies and projects to raise money from the public.