Recently interview On CNBC’s “Squawk Box,” Matthew Siegel, head of digital asset research at VanEck, predicted that Bitcoin’s current rally is “just getting started” and is expected to continue for at least two more quarters. Bitcoin’s price briefly topped $93,000 on Wednesday before seeing a slight pullback, marking an impressive gain of more than 150% this year.
VanEck’s Bitcoin Bull Run Prediction
“We think it’s just getting started. As we expected, Bitcoin had this high volatility pump after the election. We’re now in blue sky territory, no technical resistance. We think we’re likely to hit all-time highs over the next couple of quarters,” Siegel commented. “.
The expert compared Bitcoin’s performance four years ago, noting that between the elections and the end of 2020, the value of the digital asset doubled. He admitted that although “there are about 6-10 corrections,” many indicators suggest that the current rally will continue. He added: “We are up 30% so far (since Trump’s election), and a number of the indicators we track are still flashing green.”
An important factor contributing to this optimistic outlook is the notable shift in government support for Bitcoin. “This is a change in the country in terms of government support,” Siegel said, highlighting that key figures in the administration, including the vice president, attorney general, defense director, national security adviser and perhaps even the Treasury secretary, are supporters. -Bitcoin.
Siegel also noted that the expected end of “regulation by enforcement” from agencies like the SEC would positively impact the industry. “We are already seeing the economic impact of this,” he noted. “There are crypto projects announcing that they will be holding conferences in the US for the first time ever, and opening offices in the US and New York. This is great for jobs and GDP in the US.”
Institutional interest in Bitcoin is also on the rise. Sigel reported an increase in inquiries from investment advisors seeking to start or expand their exposure to Bitcoin through Bitcoin exchange-traded funds. “The number of calls from investment advisors who are at zero and looking to get to 1% or 1% and looking to get to 3% – those calls are starting to accelerate, and we think the flows are increasing,” he explained.
Regarding indicators of market sentiment, Siegel stated that mainstream interest has not yet reached previous highs, indicating room for further growth. “Google searches are nowhere near what they were four years ago,” he noted. “Coinbase’s ranking in the Apple and Android app stores is nowhere near what it was four years ago.”
VanEck set a price target of $180,000 for Bitcoin on the current uptrend, which Sigel believes can be reached in the next year. “That would be a 1,000% return from trough to peak in this cycle — this is still the smallest Bitcoin cycle ever,” he said.
The discussion also touched on potential regulatory changes, including the possible departure of SEC Chairman Gary Gensler. Although he acknowledged that “the disillusionment phase will begin within a quarter or two after the inauguration,” Siegel noted that the overall impact of reduced regulatory pressures will be positive. “One is the positive impact on the dynamic when you stop suing people for breaking rules that were never written down,” he commented.
Siegel also highlighted the broader implications of legitimizing Bitcoin as a reserve asset, which could “pave the way for it to be used as a global settlement currency, as the BRICS countries have done.” He also emphasized the potential synergy between Bitcoin and artificial intelligence. “President Trump recognizes the synergies between Bitcoin and artificial intelligence, they are two sides of the same coin,” he said. “If you want cheap AI, you’ll want to combine it with Bitcoin mining to take advantage of that cheap power.”
At press time, Bitcoin was trading at $90,816.
Featured image from YouTube, chart from TradingView.com