How bitcoin and gold went from a slump to an MVP week in just a few days
Bitcoin and gold shot higher this week, with both getting a boost from some frantic action surrounding the bond market, and the cryptocurrency also benefiting from activity in Washington. Bitcoin had dropped from a January high around $95,000…
In just a few days, Bitcoin and gold experienced a remarkable turnaround, moving from a slump to an MVP week. This surge was driven by unexpected actions in the bond market and Washington. Bitcoin's price had plummeted from a January high of around $95,000 to below $60,000 by the end of June, causing investors to avoid speculative assets.
The cryptocurrency had also faced concerns about the lack of regulation. On the other hand, gold saw its peak above $5,300 in January, but it fell to around $4,000 in June as rising interest rates made interest-bearing investments more appealing. Gold rebounded to $4,661 on Friday.
The first significant boost came on Wednesday when the Treasury Department announced plans to significantly increase its buybacks of long-term Treasurys. This move aimed to stabilize bond markets after a prolonged sell-off, prompting investors to seek alternative assets. The Treasury's intervention in the bond market was unexpected and caused a dollar sell-off, leading to a rise in the value of gold and Bitcoin as investors shifted towards safer investments.
Written by urgent.news from Associated Press's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- How bitcoin and gold went from a slump to an MVP week in just a few days winnipegfreepress.com
- How bitcoin and gold went from a slump to an MVP week in just a few days finance.yahoo.com
