Bessent Got His Wish. Now Gold And Bitcoin Are Going Berserk: Here’s What Comes Next

The Debasement Chase

Bessent’s push to get long yields lower has reinforced the weak-dollar/debasement trade, and gold and BTC have responded violently.

The fundamental case remains intact, but the character of the trade has changed. What started with depressed positioning and plenty of room for a squeeze has turned into record gold futures buying, massive CTA demand and an extreme repricing of upside skew. BTC is now showing many of the same signs.