Finance

Bitcoin momentarily crossed the $80,000 threshold for the first time in three months before experiencing a mild pullback. The explosive 23% weekly rally was fueled by the Treasury Department's expansion of its long-term bond buyback program, which revived investor anxieties regarding the devaluation of the US dollar. Additionally, market sentiment improved following optimism over potential progress on the Clarity Act for digital assets.

Bond yields declined significantly for a second consecutive session, providing relief to broader financial markets. The benchmark 10-year Treasury yield slipped to approximately 4.64% after reports surfaced that the Treasury Department could deploy its $1 trillion General Account to finance its expanded bond repurchase operations. This decline in borrowing costs alleviated investor fears surrounding long-term inflation and prolonged global economic strain.

Precious metals experienced a slight retreat after spot gold achieved a more than three-month high earlier in the trading session. Prices remain highly elevated due to ongoing geopolitical tensions in the Middle East and concerns over currency debasement. Market participants are keeping a close watch on the upcoming Personal Consumption Expenditures inflation data and Federal Reserve Chairman Kevin Warsh’s highly anticipated speech at Jackson Hole.