Bitcoin consolidated above $77,000 on August 21, marking its highest level since mid-May, while gold reached $4,632 per ounce in a 14-week high. Both assets gained 6% and 2.2% respectively in daily trading, with monthly gains of 13% for BTC/USD and 16% for XAU/USD.
The rally stems from record US government deficit spending and the Treasury’s pledge to double debt buyback operations to $4 billion, according to The Kobeissi Letter. “What’s happening now in gold and crypto should not come as a surprise,” the market commentary source stated, citing inflation and Treasury policy as drivers.
QCP Capital identified a divergence in asset behavior following the Treasury announcement. “The most notable cross-asset signal this week has been the divergence after Treasury’s announcement. Treasuries initially rallied before giving back much of the move. BTC and gold did not retrace to the same extent,” the trading company said. “That does not establish a new liquidity or monetary regime, but it does highlight the sensitivity of alternative assets to changes in long-end rates and the dollar.”
Technical Resistance and Polymarket Bets
Bitcoin’s consolidation at $77,000 coincides with its 50-week exponential moving average, a technical level the asset rejected in January at $77,232. Rekt Capital, a trader and analyst, cautioned on the significance of this level: “Break the Downtrend and Bitcoin will confirm entry into a new technical Macro Uptrend. Reject from here however and price will maintain its series of Lower Highs. History suggests there’s still time for price to continue its Downtrend.”
Polymarket odds for Bitcoin reaching $90,000 before 2027 climbed to 48% probability at time of writing, a sharp increase from earlier in the week. Such a move would represent approximately 20% upside from current levels.
Japanese government bond yields surged following a rare joint currency intervention in the yen earlier in August, adding to broader shifts in global fixed-income markets that have supported alternative assets.
