Scott Bessent just kicked the bitcoin debasement trade into another gear: Chart of the Day
Yahoo Finance • • general
Key Points:
- Bitcoin surged about 23% this week, marking its best weekly performance in over three years, while stocks declined, gold rose around 5%, and the dollar fell.
- Treasury Secretary Scott Bessent's decision to double planned buybacks of longer-dated Treasurys caused the 30-year yield to drop sharply Wednesday, coinciding with a 7% jump in bitcoin and a 4% rise in gold.
- Despite the 30-year Treasury yield recovering most of its losses by Friday, bitcoin and gold continued to rally, with bitcoin gaining over 10% and gold adding another 2%.
- This week's bitcoin rally was unusual because it occurred alongside rising long-term yields, breaking from historical patterns where bitcoin's big rallies happened with falling yields.
- Bitcoin's correlation with the S&P 500 dropped to nearly zero this week, while its correlation with gold rose above 0.5, supporting the narrative of bitcoin acting more like "digital gold" during this period.
