Bitcoin hits record weekly dollar gain amid US debt concerns

Bitcoin recorded its largest single-week gain in US dollar terms in its history, rising by $14,775 between August 16 and August 23. This surge represents a 23.5% increase, placing it among the highest weekly percentage gains since 2020. The price movement has brought Bitcoin close to its 50-week moving average, which was recently positioned around $81,795.

Market analysts attribute this momentum to low volatility, short liquidations, a gamma squeeze, and momentum chasing. A significant driver is the resurgence of the debasement trade following US announcements regarding long-term government bond buybacks. These buybacks are viewed by some investors as an attempt to manage the $40 trillion US national debt, potentially leading to currency devaluation.

This economic environment has prompted investors to shift from US bonds toward hard assets like gold and Bitcoin. While some critics, such as Peter Schiff, argue that Bitcoin is not a reliable inflation hedge and suggest investors are making a mistake by choosing it over gold and silver, the recent price action reflects a growing trend of seeking assets that cannot be artificially increased by governments.