VanEck, a company with $108 billion in assets under management, recently revealed its prediction for a post-election Bitcoin rally and its long-term price forecast for the cryptocurrency. Matthew Sigel, the Head of Digital Asset Research at VanEck, expressed his optimism for Bitcoin’s performance in an interview with CNBC. He compared the current market environment to that of 2020, when Bitcoin experienced a significant rally after the US election results were announced. Sigel believes that the low volatility leading up to the election and the entrance of new buyers into the market set the stage for a potential price rally once the election results are clear.
In addition to the short-term outlook, Sigel also shared VanEck’s bold prediction for Bitcoin’s future. The firm expects Bitcoin to become a global reserve asset by 2050, with a price of $3 million per coin. This forecast is based on increasing demand for Bitcoin and its limited supply of 21 million coins. The emergence of Bitcoin as a reserve asset could be a response to the risks of devaluation faced by traditional currencies.
Sigel also attributed Bitcoin’s recent rally to the rising odds of pro-crypto candidate Donald Trump winning in US election prediction markets. He stated that Trump is more pro-crypto and pro-Bitcoin compared to Vice President Kamala Harris, who has yet to take a clear position on digital assets.
Furthermore, Sigel explained that Bitcoin’s long-term price action is correlated with money supply growth and negatively correlated with the US dollar. The recent increase in money supply growth by the Federal Reserve may be influencing the ongoing rally. Sigel also mentioned that past Bitcoin sell-offs following government asset seizures have temporarily suppressed prices, but the market has since recovered.
During the interview, Sigel highlighted the growing influence of the BRICS countries and their interest in Bitcoin. He noted that with the addition of six new members by 2024, the combined GDP of the BRICS will surpass that of the G7. Some of these new members, including Argentina, the UAE, and Ethiopia, have launched state-backed Bitcoin mining initiatives. Russia’s Sovereign Wealth Fund also plans to invest in a regional initiative to establish Bitcoin mining and AI infrastructure across the BRICS, aiming to embed global trade in Bitcoin. These developments reflect a growing urgency among countries outside the US to find alternatives to the US dollar due to what Sigel referred to as “irresponsible fiscal policy” in the US.
Disclaimer: This article does not provide investment advice.
