Bitcoin Is Suddenly a Hedge Again, VanEck Says: What Changed?

Bitcoin (BTC) is rallying again, and VanEck's Matthew Sigel says it is finally acting like the hedge it was built to be.

Sigel, head of digital asset research at VanEck, ties the move to fears over US fiscal policy rather than pending crypto legislation.

All Eyes on the US Treasury

The US Treasury doubled its long-dated bond buyback ceiling, from $2 billion to at least $4 billion per operation. The move compressed yields and fed a broader risk-on rally tied to the Treasury's bond buyback expansion.

Roughly $3 billion in forced short liquidations amplified the move. bitcoin climbed to $72,757, part of what one report called Bitcoin's short squeeze cascade.

Sigel downplays the CLARITY Act, the crypto market structure bill working through Congress, as the driver. Coinbase CEO Brian Armstrong has voiced optimism the bill clears 60 Senate votes, though prediction markets price a slim chance it becomes law this year, a gap Sigel says explains why the rally isn't about CLARITY Act's Senate odds.

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