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As Bitcoin rebounds from its brief correction and approaches the $70,000 mark, Matthew Siegel, head of digital asset research at asset manager and exchange-traded cryptocurrency issuer VanEck, shared his thoughts on the potential path for the cryptocurrency in light of the upcoming US presidential election and broader economic factors. On CNBC recently interview.
Bitcoin recovery is associated with M2 growth and seller fatigue
Siegel pointed to the relationship between former President Donald Trump Lead in betting polls Against Vice President Kamala Harris and the rise of Bitcoin. He described Trump as the most pro-crypto candidate, suggesting that his policies may favor the cryptocurrency market.
Conversely, Siegel expressed doubts about Harris’ understanding of Bitcoin, suggesting that her administration may not prioritize cryptocurrency issues.
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Dig deeper into Bitcoin Price dynamicsSiegel highlighted several crucial connections. He noted a negative correlation with the US dollar and a positive correlation with the growth of the global money supply, known as M2, leading to the current uptrend.
Siegel also attributed the recent price rebound to the Federal Reserve’s pivot toward reaccelerating M2 growth, coupled with what he described as the current “seller fatigue” in the BTC market.
Additionally, Siegel identified something promising Bullish setup For Bitcoin as the election approaches, especially its increasing correlation with the Nasdaq, where it has reached a two-year high of 1.5.
Siegel pointed to a similar pattern from the 2020 election, where Bitcoin showed low volatility up until the election result was announced, resulting in low volatility. Big pool With new buyers flooding the market. He stressed that “new buyers are born every day,” indicating a constant flow of interest in Bitcoin.
When discussing Bitcoin’s relationship with gold and M2, Siegel described Bitcoin as a “chameleon,” highlighting its dynamic relationships that can change over time. This variability makes it difficult to accurately predict Bitcoin’s short- and long-term behaviors.
$180,000 after the election, and $3 million by 2050
In addition to American political dynamics, Siegel pointed to recent activities within the United States BRICS An intergovernmental organization, especially the involvement of new members Argentina, the United Arab Emirates and Ethiopia in Bitcoin mining.
The researcher pointed out that these countries are taking advantage of government resources to mine Bitcoin to confront what he called the “irresponsible” financial policies of the United States.
Siegel also mentioned Russia’s plans for its sovereign wealth fund to invest in Bitcoin mining through BRICS, and proposed a global trade settlement in Bitcoin.
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When asked about the possible future Price points For Bitcoin, Siegel explained that historical highs have seen increases of around 2,000%. If Bitcoin achieves half that post-election rally, it could reach nearly $180,000.
Looking to the future, Siegel pointed to a model from VanEck’s digital assets research team, predicting that by 2050, bitcoin could serve as a digital currency. Reserve assets for global tradeheld 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, Bitcoin is trading at $68,900, up 1.7% over the past 24 hours.
Featured image of DALL-E, chart from TradingView.com
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