(AP photo)
Bitcoin and gold surged last week week as investors moved into alternative assets amid turbulence in U.S. bond markets and fresh support for the crypto sector from Washington.
Bitcoin rose above $77,000 on Aug. 21 after falling below $60,000 in June from a January high near $95,000. Gold climbed to $4,661 after dropping to around $4,000 in June from a record above $5,300 earlier this year.
Markets reacted on Aug. 19 after the U.S. Treasury Department announced plans to at least double purchases of longer-term government debt following a bond sell-off. On the same day, President Donald Trump urged Congress to advance crypto legislation.
The developments triggered a sell-off in the dollar and boosted gold and bitcoin. Investors also focused on the U.S. national debt, which surpassed a record $40 trillion on Aug. 19, while concerns over inflation remained elevated amid the conflict in Iran and rising energy prices.
The moves fueled the so-called “debasement trade,” in which investors shift into assets seen as alternatives to the dollar.
Crypto sentiment was further supported after Trump called for passage of the crypto-friendly Clarity Act. Commodity Futures Trading Commission Chair Mike Selig also pledged to use “every tool available” to advance the administration’s agenda.
