Gold and bitcoin, which had fallen from their January peaks to June lows, have surged sharply this week, drawing investors' attention. These changes were driven by tensions in the bond market and actions by the U.S. government, as reported by infohub.kz.

Bitcoin had dropped from a January high of around $95,000 to below $60,000 at the end of June. Earlier in the year, investors shied away from risky assets, and concerns grew over the lack of progress on proposed crypto regulation. However, on Friday, bitcoin rose above $77,000.

Gold hit a high above $5,300 in January but fell to around $4,000 in June due to rising interest rates. On Friday, gold climbed to $4,661.

On Wednesday, the U.S. Treasury Department announced a significant increase in its buybacks of long-term government bonds. That same day, President Donald Trump urged Congress to fast-track crypto legislation. These developments led to a weaker dollar and higher gold and bitcoin prices, as investors shifted to alternative assets.

The Treasury's move was aimed at calming the bond market after sustained selling. However, it raised questions about whether the government is trying to lower borrowing costs despite inflationary pressures. Treasury Secretary Scott Bessent's actions could potentially hinder the Federal Reserve's fight against inflation.

Meanwhile, the U.S. national debt surpassed a record $40 trillion, just five months after hitting $39 trillion in March. Concerns over inflation, especially due to the conflict in Iran and rising energy prices, have intensified.

Funds flowing out of the dollar and bonds were directed into alternative assets, known as the "debasement trade," including gold and bitcoin. Gold rose more than 2% on Wednesday, and bitcoin gained over 20% for the week.

It was a successful week for crypto in Washington. President Trump held a crypto conference at the White House, calling on Congress to pass the crypto-friendly Clarity Act, which he said would "keep us ahead of China." Commodity Futures Trading Commission Chair Mike Selig also vowed to "use every tool available" to advance Trump's agenda.

Bitcoin's sharp rise led to a short squeeze. Many investors had bet that bitcoin would stay in the $62,000-$67,000 range. However, after the Treasury's announcement, bitcoin broke above $67,000, forcing short sellers to close their positions. According to CoinGlass, over $4 billion in short positions were liquidated on Friday.