Bitcoin Acting as Both Risky Asset And Hedge -- Market Talk

1009 GMT - Bitcoin is increasingly trading as both a risk-sensitive asset and a hedge against fiscal and monetary policy uncertainty, Zaye Capital Markets analyst Naeem Aslam says in a note. President Trump's comments about tariffs, Iran and larger household tax refunds reinforce broader concerns about inflation, government borrowing and geopolitical risk, he says. Those forces can support bitcoin's longer-term "hard asset" narrative. However, continued gains in bitcoin require real spot buying rather than forced liquidations once crowded bets on the cryptocurrency falling are exhausted, he says. "That makes institutional flows, regulatory progress and Treasury-market conditions more important than simply tracking momentum." Bitcoin rises 1.5% to $77,406 after reaching a three-month high of $79,455 on Friday, LSEG data show. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

August 24, 2026 06:09 ET (10:09 GMT)