Bitcoin Soars Above $70,000 as US Fiscal Policy Fears Take Hold

Bitcoin's price has surged to above $70,000, and according to Matthew Sigel, head of digital asset research at VanEck, it is finally acting like a hedge it was built to be.

Sigel attributes the move to fears over US fiscal policy rather than pending crypto legislation. The US Treasury doubled its long-dated bond buyback ceiling from $2 billion to at least $4 billion per operation, compressing yields and fueling a broader risk-on rally tied to the Treasury's bond buyback expansion.

Roughly $3 billion in forced short liquidations amplified the move, with Bitcoin climbing to $72,757. Sigel downplays the CLARITY Act, the crypto market structure bill working through Congress, as the driver of the rally.