Treasury action and Washington boost bitcoin and gold
An unexpected Treasury announcement to at least double planned purchases of long-term Treasurys, combined with pro-crypto signals from Washington, sent gold and bitcoin sharply higher this week. The dollar fell and Treasury yields dropped after the buyback plan, prompting a flight into alternative assets described as the "debasement trade." Bitcoin rose above $77,000 by Friday and logged a more than 20% weekly gain with over $4 billion in bearish positions liquidated, while gold climbed to $4,661; the events raise questions about inflationary pressure and central bank room to act.
Treasury buybacks and pro-crypto moves drove gold and bitcoin higher.
Context
The Treasury said it would double planned long-term debt buybacks. The dollar fell and yields dropped, so investors bought gold and bitcoin. Washington also signaled faster crypto-friendly rules and legislation next.
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