Bitcoin Retains Gains Near $77,000 as Gold Erases Recent Rally Following Hawkish Fed

Gold tumbled more than 8.5% from its August peak of $4,700 per ounce, falling to around $4,300 and erasing the advance sparked by U.S. Treasury liquidity measures. In contrast, Bitcoin traded near $77,000, maintaining roughly a 20% gain from the $64,000 level where its recent uptrend began.

Markets initially surged after Treasury Secretary Scott Bessent announced on August 19 that the Treasury would double its maximum liquidity-support buybacks of long-dated debt from $2 billion to $4 billion per operation. That move had followed a spike in the 30-year Treasury yield to 5.34% on August 18, its highest level in 19 years. Following the announcement, yields retreated toward 5.2%, gold jumped toward $4,700 by August 25, and Bitcoin climbed from under $65,000 to approximately $81,500.

The momentum reversed after Federal Reserve Chairman Kevin Warsh delivered hawkish remarks at Jackson Hole, signaling that interest rates could stay elevated or rise further. Bond yields subsequently rebounded, reducing demand for debasement hedges. While gold lost all of its August gains, Bitcoin pulled back to $77,000, with spot Bitcoin exchange-traded funds also recording net outflows as initial buying faded.