Investors saw a swift rally in two traditionally safe‑haven assets this week after the U.S. Treasury announced a major expansion of its long‑term Treasury buyback program and former President Donald Trump urged Congress to act quickly on crypto legislation. Bitcoin surged past $77,000, while gold climbed to $4,661, reversing declines that had taken both assets down to historic lows earlier in the year.
Treasury’s bond‑market intervention
On Wednesday, the Treasury Department disclosed plans to at least double the size of its scheduled purchases of longer‑term government debt. The move was intended to calm a bond market that had been selling off as investors demanded higher yields amid concerns about inflation and the nation’s growing debt load, which recently topped $40 trillion.
By increasing demand for Treasurys, the Treasury helped push yields lower and weakened the U.S. dollar. Those shifts made alternative assets such as gold and bitcoin more attractive, prompting a rapid inflow of capital into both markets.
Trump’s crypto push
That same day, former President Donald Trump, who reported roughly $1.2 billion in crypto‑related earnings last year, addressed a White House crypto conference. He called on Congress to pass the “Clarity Act,” arguing it would keep the United States ahead of China and other global competitors. Trump then handed the floor to Commodity Futures Trading Commission Chair Mike Selig, who pledged to use every tool at the agency’s disposal to advance the administration’s crypto agenda.
Regulators are also moving on the issue. The CFTC scheduled a meeting to explore how existing authority could ease crypto rules, and other agencies have proposed rules that would simplify fundraising for crypto companies.
Market reaction
Bitcoin had been trading in a narrow $62,000‑$67,000 range for weeks. After the Treasury announcement, the dollar fell and Treasury yields dropped, allowing bitcoin to break above $67,000 and eventually reach over $77,000 on Friday. The rally forced many short sellers—investors who had bet the price would stay low—to cover their positions, buying back the cryptocurrency and adding further upward pressure.
According to CoinGlass, more than $4 billion in bearish crypto positions were liquidated during the week, amplifying the price surge. Gold also benefited, rising more than 2% on Wednesday and reaching $4,661, its highest level since the early‑year peak.
Broader context
The rapid price gains occurred against a backdrop of rising inflation concerns, a record‑high national debt, and ongoing geopolitical tensions, including the conflict in Iran and volatile energy prices. Analysts note that when the dollar weakens, investors often turn to assets perceived as stores of value, a pattern reflected in this week’s “debasement trade” that now includes both gold and bitcoin.
While the Treasury’s actions may provide short‑term relief for bond markets, some economists warn that lowering borrowing costs could add upward pressure on inflation, potentially limiting the Federal Reserve’s ability to combat price growth.
Overall, the combination of federal fiscal policy and a high‑profile political push for crypto‑friendly legislation created a unique catalyst that propelled both bitcoin and gold to an unexpected rally, offering investors a brief respite from the broader market volatility that has characterized much of 2026.
Original reporting: KTBS 3 (Shreveport) — read the source article.
