Bitcoin Rebounds Above $81,000 as Gold Hits Three-Month High on Dollar Weakness, Treasury Buybacks

Bitcoin rose back above $81,000 on Tuesday, tracking a broader move into scarce assets as gold climbed to a three-month high amid a softer U.S. dollar, shifting Treasury yields and renewed unease over the purchasing power of fiat currencies. BTC touched an intraday peak of $81,237.94 before slipping toward $80,300, according to Reuters. The cryptocurrency is up about 28% in August and is on pace for its strongest monthly gain since November 2024. The latest leg of the rally gathered momentum after updates to the U.S. Treasury's bond buyback program. The Treasury said it will step up liquidity-support purchases of longer-dated government securities starting Sept. 9, lifting the maximum size of individual operations from $2 billion to at least $4 billion. The plan targets improved liquidity in the 10- to 30-year segment. Markets reacted with fresh dollar selling and rotation into assets viewed as relatively scarce. Bitcoin advanced alongside bullion, reviving the "debasement trade"—the view that fiscal strain and policy intervention can erode confidence in government currencies and steer capital toward alternative stores of value. The environment has reinforced Bitcoin's scarcity narrative: issuance follows a fixed schedule, mining rewards are periodically reduced through the halving, and total supply is capped at 21 million coins. Institutional flows added fuel. U.S. spot Bitcoin ETFs drew roughly $1.9 billion during the recent breakout week, while more than $4 billion in bearish crypto positions were liquidated as prices rose, forcing short sellers to cover. Gold has been supported by many of the same forces. Spot bullion traded around $4,677 an ounce on Tuesday, while futures neared $4,720. Gold's August rise is shaping up to be its strongest monthly performance since September 1999, keeping the $4,700 area in focus ahead of Federal Reserve Chair Kevin Warsh's Jackson Hole remarks. Buying has not been limited to private investors. Central banks purchased a record 289 metric tons of gold in the second quarter, valued at an estimated $45 billion. In a World Gold Council survey, 45% of reserve managers said they expect to increase holdings over the next year. The next catalyst is the Fed's policy signal. A more hawkish tone could lift yields and the dollar, putting pressure on both bitcoin and gold. A softer message would leave the macro backdrop that powered August's rally largely intact.