BlockBeats News, August 21st, according to the Financial Times, after US Treasury Secretary Janet Yellen announced an expansion of long-term Treasury repurchases, safe-haven assets and "Currency Debasement Trade" heated up, with Bitcoin, gold, and other assets experiencing significant gains.

Bitcoin surged nearly 8% on Friday, with a weekly cumulative increase of 24%, breaking through $78,000, reaching a new high since May and poised to achieve the best weekly performance in over three years. Gold also showed strong performance during the same period, rising 1.5% to around $4585 per ounce on Friday, with the August cumulative increase exceeding 13%, potentially achieving the largest monthly gain since 1999.

Market participants believe that the core driver of this rally is the US Treasury's expansion of the long-term Treasury purchase program. US Treasury Secretary Janet Yellen had previously stated that she would "at least double" the size of long-term Treasury repurchases. This measure temporarily suppressed the 30-year Treasury yield but also raised concerns in the market about the decline in the purchasing power of the US dollar, subsequently leading to a continuous weakening of the US dollar index.

Mohit Kumar, Chief European Economist at Jefferies, stated that gold and crypto assets experienced a "significant increase" after Yellen's announcement of related measures, further supporting the expectation of a weaker US dollar.

This rise has reignited the "Debasement Trade," where investors hedge against the risk of fiat currency devaluation by allocating assets such as gold and Bitcoin. The previous conflict between the US and Iran led to an increase in inflationary pressure, briefly disrupting this trading logic. Now the market has returned to loose liquidity expectations.

In addition to Bitcoin, Ethereum, Solana, and XRP have each risen by 29%, 17%, and 40% in the past week, respectively. Previously, the crypto market had been in a slump since last fall, with Bitcoin seeing a maximum decline of 31% in the past year.

Meanwhile, crypto-related stocks have risen simultaneously: Coinbase rose by 16% this week, stablecoin issuer Circle rose by 17%, and Bitcoin holding company Strategy rose by 21%.

Analysts pointed out that Bitcoin's rapid rise triggered a short squeeze, with a large number of short positions being forced to close, further driving up prices. Additionally, US President Trump met with regulatory agencies and cryptocurrency executives this week, and the US Securities and Exchange Commission (SEC) introduced a new crypto regulatory proposal, seen by the market as a positive industry development.