Bitcoin's Biggest Week Tied to Treasury Buybacks

What Changed in Bonds

The breakaway started after the US Treasury said on August 19 it would double its liquidity-support buybacks in longer maturities. Each operation increased from $2 billion to at least $4 billion, with the larger purchases slated to begin September 9.

Bitcoin then rallied 22.4% for the week, its strongest run since March 2024. Gold advanced around 5%.

Bitwise Investments finds Bitcoin has historically been less correlated to 10-year Treasury yields than gold. In practical terms, when yields rise and Treasury prices fall, gold tends to twitch more than Bitcoin.

How Bitcoin and Gold Are Moving Together

Even with Bitcoin's lighter link to yields, its connection to gold has tightened. Bitwise reports that, as of August 31, 2026, the 90-day co-movement of Bitcoin and gold was above 0.5, the highest level observed since 2020.

Grayscale noted on August 27 that earlier in 2026 this same correlation hovered near zero. The snap from near-zero to above 0.5 points to shared macro drivers, namely rising long-term yields and growing concern about fiscal sustainability.

All of this is happening as US gross federal debt broke past $40 trillion in August 2026, reaching approximately $40.13 trillion by mid-month.