According to reports from CNBC, VanEck's Matthew Sigel, head of digital asset research, has declared that Bitcoin is finally acting like the hedge it was built to be. Sigel's assessment comes as Bitcoin rallied above the $72,000 threshold on Thursday, with the cryptocurrency charging back above this key level following an unexpected liquidity decision by the US Treasury Department. The transformation represents a significant shift from Bitcoin's previous behavior during market stress periods, where it often moved in tandem with traditional assets rather than serving as a protective hedge. Sigel now maintains that Bitcoin remains 'one of the best hedges you can find' in an environment characterized by interest rate pressures and structural dollar weakness. Sigel joined Power Lunch to discuss the CLARITY Act, the state of Bitcoin and the crypto economy, reinforcing his hedge thesis during the interview.
As reported by CNBC, the US Treasury's decision to double its long-dated bond buyback ceiling from $2 billion to at least $4 billion per operation has been the primary catalyst for Bitcoin's recent performance. This policy shift compressed yields and fueled a broader risk-on rally tied to the Treasury's bond buyback expansion. The move was amplified by approximately $3 billion in forced short liquidations within 24 hours, which significantly contributed to Bitcoin's upward momentum during this period. Sigel warns that heavily relying on short-term T-bills – which currently make up roughly 23% of marketable debt, well above the Treasury Advisory Committee's recommended 15% to 20% range – triggers severe fiscal dominance that forces pressure onto the US dollar.
According to Sigel's analysis reported by CNBC, the CLARITY Act, the crypto market structure bill working through Congress, is not the primary driver behind Bitcoin's recent rally. While Coinbase CEO Brian Armstrong has expressed confidence that the bill will cross the 60-vote threshold in the Senate as both political parties have secured roughly 90% of their key objectives, Sigel downplays this legislation as the key factor. He notes that prediction platforms like Kalshi remain far more conservative, pricing in roughly a 23% probability of the bill becoming law before year-end, explaining why the rally isn't primarily focused on CLARITY Act's Senate odds. Sigel dismisses the notion that Bitcoin is trading on pending legislative efforts.
As reported by CNBC, Bitcoin's overall performance in 2026 remains disappointing, with the world's largest cryptocurrency by market cap currently down some 20% year-to-date. However, Sigel points to encouraging technical indicators, noting that 8 out of 12 internal capitulation indicators have turned positive following a 10-month correction. His analysis shows that BTC's primary 15-year correlation has been a negative relationship with USD, supporting his hedge thesis. Sigel maintains his price target of $100,000 in the near term and up to half a million dollars by 2029, with momentum expected to carry toward these levels as short positions unwind and the market reprices currency debasement risk.
