Why turmoil in the bond market is boosting gold and Bitcoin

WASHINGTON (TNND) — The prices of Bitcoin and gold have moved higher in recent days as investors respond to a shakeup in the bond market and concerns about the value of the U.S. dollar, which came as cryptocurrency also got a boost from progress on regulatory guidelines in Washington.

Bitcoin neared a high of $80,000 earlier this week, a 22% surge after hovering below $65,000 for months, which came at the same time as the bond buyback announcement. Gold also hit a recent high this week as investors looked for alternate stores of value outside the value and government debt after long-term bond yields hit their highest levels since 2007.

The rally accelerated after the Treasury Department announced last week it would soon double the maximum size of its bond buyback from $2 billion to $4 billion using its general account. It was the latest move by the Trump administration to intervene in global financial markets, which Treasury Secretary Scott Bessent said aimed to limit the rise of long-term government bond yields to minimize borrowing costs.

Yields represent the costs investors are demanding to be paid in exchange for buying bonds and have recently hit their highest levels since 2007. Bond prices move in opposing directions, meaning higher demand from the Treasury’s bond purchases can move prices higher and push yields lower. Yields have dipped since Bessent’s announcement last week, but there are questions about how long the buyback effects will last.