Financial markets became more volatile in mid-August after Scott Bessent of the US Treasury Department announced a major monetary pivot. On August 19, the department said it would at least double the maximum size of liquidity-support buybacks for longer-dated government debt, from $2 billion to $4 billion per operation, after the 30-year Treasury yield reached 5.34%, a 19-year high. The yield subsequently fell to 5.2%, while gold, stocks and crypto rallied. Gold rose from $4,360 an ounce to $4,530 within hours and reached $4,700 on August 25, while Bitcoin climbed from weeks below $65,000 to $81,500 last week. Analysts linked the gains to the "debasement trade" narrative, as the dollar weakened and US debt increased. The market backdrop later shifted after Kevin Warsh, the new Federal Reserve Chairman, delivered a speech at Jackson Hole that investors viewed as hawkish and suggestive of future rate hikes. Bitcoin slipped to $77,000, while the bond market recovered almost all of its earlier losses. Gold fell to $4,300 after being rejected at $4,700, leaving it more than 8.5% below its local peak. Bitcoin remains 20% above the $64,000 level where its rally began, although spot BTC ETFs recorded more withdrawals than inflows over the past couple of business days as the initial buying rush faded.