Why Bitcoin Hit $86,000 Despite Fed Rate Hikes - VanEck's Sigel, Former CFTC Chair Weigh In

Bitcoin surged from roughly $58,000 over the summer to a September peak of $86,000, even as the macro backdrop worsened with a Fed rate hike and rising Treasury yields. VanEck Head of Digital Assets Research Matthew Sigel and former CFTC chair Chris Giancarlo offered two main drivers. Sigel said “seller exhaustion” did most of the work, pointing to multiple BTC capitulation indicators flashing through the summer and a later Treasury bond-buyback announcement that sped up the recovery. He noted bitcoin historically shows little persistent correlation with bond yields, but a negative link to the U.S. Dollar Index and a positive one to money supply. Giancarlo argued higher rates raise government debt costs and can intensify currency-debasement concerns, strengthening bitcoin’s capped-supply scarcity narrative.