Bitcoin Tops $81,000 as Gold Notches Its Best Month Since 1999

Bitcoin (BTC) surged to $81,165 on Tuesday before settling at $80,792, marking a 4.5% gain over 24 hours. At the same time, gold rose to $4,677.19 per ounce, its highest level since mid‑May and up about 13% for the month.

Parallel Drivers for Bitcoin and Gold

Both assets are benefitting from a weakening U.S. dollar and lower Treasury yields, which make non‑yielding stores of value more attractive. The U.S. Dollar Index fell 0.8% this month, reducing the dollar price of gold for foreign investors. Treasury yields, while still elevated, have been nudged down by a government bond‑buyback program, easing the opportunity cost of holding bullion.

Gold’s Monthly Performance

UOB analysts noted that gold’s monthly rise is the strongest since September 1999, when European central banks capped gold sales. This month’s rally is driven by currency and rate expectations rather than a supply shock.

Bitcoin’s Recent Moves

Bitcoin briefly slipped below $80,000 last week amid criticism of the Treasury buyback plan, but quickly recovered and broke the $81,000 mark. An executive from Strive cited the breakout above gold as a sign that Bitcoin’s bear market may be ending.

Future Outlook Tied to Fed Signals

All attention now turns to Federal Reserve Chair Kevin Warsh’s remarks at the upcoming Jackson Hole symposium. A hawkish stance could dampen both rallies, while a dovish surprise might shift market focus to concerns over Fed independence and U.S. debt sustainability, according to Citi analysts.

The next Fed signals will be crucial in determining whether the current upward momentum in Bitcoin and gold continues or stalls.