VanEck Sees Bitcoin As Key Global Reserve Asset, Projecting $3 Million Price Tag By 2050
October 29 2024 - 3:30AM
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As Bitcoin rebounds from its brief correction and approaches the
$70,000 mark, Matthew Sigel, head of digital asset research at
asset manager and crypto ETF issuer VanEck, shared his insights on
the cryptocurrency’s potential trajectory in light of the upcoming
US presidential election and broader economic factors in a recent
CNBC interview. Bitcoin Recovery Tied To M2 Growth And Seller
Exhaustion Sigel noted the correlation between former President
Donald Trump’s lead in betting polls against Vice President Kamala
Harris and Bitcoin’s rise. He characterized Trump as the most
pro-crypto candidate, suggesting that his policies may favor the
cryptocurrency market. Conversely, Sigel expressed skepticism
about Harris’s understanding of Bitcoin, indicating that her
administration may not prioritize cryptocurrency issues. Related
Reading: If Dogecoin Breaks Above Key Resistance ‘We Could See A
25% Rally’ – Top Analyst Delving deeper into Bitcoin’s price
dynamics, Sigel highlighted several critical correlations. He
pointed out a negative correlation with the US dollar and a
positive correlation with the global money supply growth, known as
M2, leading to the current uptrend. Sigel also attributed the
recent price recovery to the Federal Reserve’s pivot towards
reacceleration of M2 growth, alongside what he described as a
current “seller exhaustion” in the BTC market.
Additionally, Sigel identified a promising bullish setup for
Bitcoin as the election approaches, particularly its rising
correlation with the Nasdaq, reaching a two-year high of 1.5.
Sigel recalled a similar pattern from the 2020 elections, where
Bitcoin exhibited low volatility until the election outcome was
announced, leading to a substantial rally as new buyers flooded the
market. “New buyers are born every day,” he emphasized, indicating
a steady influx of interest in Bitcoin. When discussing Bitcoin’s
relationship with gold and M2, Sigel described Bitcoin as a
“chameleon,” highlighting its dynamic correlations that can shift
over time. This variability makes it challenging to accurately
predict Bitcoin’s short- and long-term behaviors. $180,000
Post-Election, $3 Million By 2050 In addition to US political
dynamics, Sigel pointed to recent activities within the BRICS
intergovernmental organization, particularly the involvement of new
members Argentina, the UAE, and Ethiopia in Bitcoin mining.
The researcher noted that these countries are leveraging government
resources to mine Bitcoin to counter what he termed the
“irresponsible” fiscal policies of the US. Sigel also
mentioned Russia’s plans for its sovereign wealth fund to invest in
Bitcoin mining through BRICS, proposing settling global trade in
Bitcoin. Related Reading: GOAT Outpaces PEPE Growing To $900M
Market Cap In 2 Weeks – Details When asked about potential future
price points for BTC, Sigel explained that historical rallies have
seen increases of around 2,000%. If Bitcoin were to achieve half of
that rise post-election, it could reach approximately
$180,000. Looking further ahead, Sigel referenced a model
from VanEck’s digital asset research team, predicting that by 2050,
Bitcoin could serve as a reserve asset for global trade, held by
central banks at a rate of 2%. This model suggests a staggering $3
million per Bitcoin price by that year. At the time of writing, BTC
is trading at $68,900, up 1.7% over the past 24 hours.
Featured image from DALL-E, chart from TradingView.com
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