Bitcoin Rises Sharply as U.S. Debt Concerns Boost Dollar Hedge Appeal

Dow Jones11:28

0328 GMT - Bitcoin rises sharply in Asian trading, up 2.5% at $74,457.00. There are renewed fears over fiscal dominance, says Matthew Sigel, head of digital assets research at VanEck. Gains are being driven by concerns over how the U.S. government is financing its $40 trillion debt, rather than debate over the pro-crypto Clarity Act, he says. Sigel notes the Treasury is increasingly relying on short-term Treasurys to borrow money, raising concerns over higher debt-servicing costs. This may ultimately create pressure on the dollar, forcing policymakers toward easier monetary conditions. With bitcoin rising as the dollar weakens, investors are increasingly viewing the cryptocurrency as a hedge against a weaker dollar. Bitcoin is .

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