Bitcoin surges above $80,000 as US Treasury bond moves fuel crypto rally

Billionaire investor Stanley Druckenmiller has criticized the US Treasury's plan to buy back bonds, warning that it could heighten the danger of eroding the Treasury market's credibility. According to Druckenmiller, the intervention removes a vital check on government borrowing and fiscal accountability, and markets are better judges of prices.

Druckenmiller, a former colleague of Treasury Secretary Scott Bessent, argues that the US should let the bond market speak rather than trying to suppress bond yields. He believes that the long-term Treasury yield is the most important price in the world and serves as the only fiscal disciplinarian the US has left.

Instead of interfering in the market, Druckenmiller suggests that Washington should take steps to cut the budget deficit. The Guardian Business reports that he worked with Bessent at George Soros's fund management firm in the 1990s. Investing.com notes that Druckenmiller published his opinion piece in the Wall Street Journal.

Brief written by urgent.news from CoinDesk, Guardian Business, Investing.com — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.