Bitcoin and gold rally after Treasury bond-buyback announcement and crypto-friendly political moves
Both bitcoin and gold rose sharply on Friday, spurred by a surprise U.S. Treasury decision to double long-term debt purchases and remarks from President Donald Trump urging swift crypto legislation.
Bitcoin jumped above $77,000 on Friday, while gold rose to $4,661, marking their strongest gains of the week. The moves followed a surprise Wednesday announcement by the U.S. Treasury Department to at least double its planned purchases of long-term Treasury securities, a step intended to stabilize bond markets after a sell-off that had pushed yields higher. The Treasury action contributed to a decline in the dollar and a fall in bond yields, prompting investors to shift into alternative assets such as gold and bitcoin.
President Donald Trump, who disclosed earnings of about $1.2 billion from crypto holdings last year, used a White House crypto conference to urge Congress to pass the so-called Clarity Act, arguing it would keep the United States “ahead of China, ahead of everyone else.” Commodity Futures Trading Commission Chair Mike Selig said the agency would “use every tool available” to advance the administration’s crypto agenda, and regulators were slated to discuss easing rules for crypto fundraising.
Analysts noted that the Treasury’s intervention reduced the profitability of short positions on bitcoin, leading to forced buying that amplified the rally. Data from CoinGlass indicated that more than $4 billion in bearish crypto positions were liquidated during the week.
The Treasury’s increased debt purchases came as the national debt topped a record $40 trillion, raising concerns about inflation and the potential impact on the Federal Reserve’s rate-raising strategy.