Bitcoin Briefly Breaks $81,000 as Gold Climbs Toward a 27-Year High

Bitcoin (BTC) surged to an intraday peak of $81,165 on Tuesday before easing to $80,792, up 4.5% over the past 24 hours, as gold extended its advance to the highest level in more than three months. The two markets are responding to the same macro drivers: a softer US dollar and lower Treasury yields, which are supporting demand for both bullion and Bitcoin as investors reassess the path for interest rates. Spot gold rose 0.6% to $4,677.19 an ounce, the strongest level since mid-May, and is up about 13% so far this month. Gold futures also reached a three-month high near $4,720. UOB analysts described the move as gold's best monthly performance since 1999, citing the report's data. The last comparable surge came in September 1999, when several European central banks agreed to cap gold sales, helping reverse a prolonged price decline. This month's rally is being driven instead by a weaker dollar and renewed concern over Federal Reserve independence, rather than a supply shock. The US Dollar Index is down 0.8% this month, effectively making dollar-denominated gold cheaper for non-US buyers. Treasury yields have remained elevated for much of August, but the government's bond buyback plan has helped keep yields roughly 3 basis points lower on the month, reducing the opportunity cost of holding non-yielding gold. Bitcoin has tracked the same direction. The token briefly slipped below $80,000 last week as critics questioned the Treasury buyback plan, then reclaimed the level and moved higher. A Strive executive recently pointed to Bitcoin's breakout versus gold as a sign the bear market has ended. Investors are now focused on Federal Reserve Chair Kevin Warsh, who is set to speak ahead of this week's Jackson Hole symposium, the annual central bank gathering that often offers clues on policy direction. A hawkish message could cool both rallies. Citi analysts said a dovish surprise would shift attention back to the "debasement trade," reflecting fresh worries about Fed independence and US debt sustainability. Bitcoin's response to this week's Fed signals remains uncertain given its history of diverging from traditional safe havens even when the macro backdrop appears aligned. For now, both markets are pricing similar risks: a weaker dollar and contained yields have powered the move, and the Fed's next signal may determine whether the rally extends or stalls.