Bitcoin and gold surged simultaneously, with the former reaching nearly $80,000 after gaining $15,000 in just 48 hours, while the latter approached $4,600 per ounce. This momentum was triggered by US Treasury Secretary Scott Bessent’s announcement to at least double purchases of long-dated US government debt to $4 billion per operation. The combination of US public debt surpassing $40 trillion, a budget deficit above 6% of GDP, and the dollar down 1%-2% this week has revived the « debasement trade », a strategy of buying scarce assets as protection against currency erosion.
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