Bitcoin is on course for its best week in more than three years while gold is heading for its biggest monthly gain this century, amid investor fears that US Treasury secretary Scott Bessent’s intervention in the bond market will continue to weigh on the dollar.

The price of bitcoin jumped nearly 8 per cent on Friday and is up 24 per cent this week to more than $78,000, the cryptocurrency’s highest level since May. Gold gained 1.5 per cent on Friday to about $4,585 a troy ounce and is up more than 13 per cent in August, putting it on track for its biggest monthly gain since 1999.

Traders said both assets rallied after the US Treasury announced it would “at least double” its purchases of long‑term government debt, pushing down 30‑year yields but weakening the dollar amid concerns over the greenback’s purchasing power. The dollar index fell 0.8 per cent on Wednesday and a further 0.3 per cent on Friday.

The debasement trade, which bets on assets that protect against a weakening dollar, has returned after being disrupted by the Iran war earlier this year. Analysts cite lower rate‑rise expectations and Bessent’s move as a “perfect storm” for the rally, while a short squeeze and a White House meeting with crypto leaders added momentum.