Bitcoin tops $81,000 as gold posts best month since 1999

Bitcoin climbed as high as $81,165 on Tuesday. Bitcoin later eased to $80,792. Bitcoin was up 4.5% in 24 hours. Spot gold reached $4,677.19 per ounce on Tuesday. Spot gold gained 0.6% that day. Gold was up about 13% this month. UOB analysts described the performance as gold's best month since 1999. Gold futures reached a three-month high near $4,720. The September 1999 rally followed an agreement by European central banks to cap their gold sales. This month's rally has instead reflected a weaker US dollar and renewed concern about Federal Reserve independence. The US Dollar Index was down 0.8% this month. The decline made dollar-priced gold cheaper for foreign buyers. Treasury yields stayed elevated through most of August. The government's bond buyback plan kept yields roughly 3 basis points lower this month. Lower yields reduced the opportunity cost of holding non-yielding gold. Bitcoin briefly fell below $80,000 last week. Critics questioned the same Treasury buyback plan. Bitcoin later reclaimed $80,000 and moved higher. A Strive executive said Bitcoin's breakout against gold showed that its bear market had ended. Federal Reserve Chair Kevin Warsh is scheduled to speak ahead of this week's Jackson Hole symposium. Central bank officials often use the annual gathering to signal future policy direction. A hawkish tone could stall both rallies. Citi analysts said a dovish surprise could redirect markets toward the debasement trade. That trade reflects concerns about Federal Reserve independence and US debt sustainability. Bitcoin's response to this week's Federal Reserve signals remains uncertain because it has diverged from traditional safe-haven assets in the past. Both markets are now pricing similar risks. A softer dollar and capped yields have supported the rally so far. The Federal Reserve's next move could determine whether the rally extends or stalls.