A recent analysis from VanEck’s head of digital asset research, Matthew Sigel, highlights a bullish outlook for Bitcoin (BTC) as the US presidential elections approach. Currently, BTC is trading at $70,000, and Sigel believes significant market movements could unfold shortly.
What Insights Did VanEck Provide?
In a discussion on CNBC’s Squawk Box, Sigel shared that Bitcoin may be poised for an upward trend if Donald Trump secures victory in the elections scheduled for November 5. He emphasized that Trump’s pro-crypto stance contrasts sharply with his Democratic rival, Vice President Kamala Harris, which could influence cryptocurrency stakeholders.
Matthew Sigel stated, “Trump is the clear candidate for crypto and Bitcoin, while Vice President Harris hasn’t addressed it significantly, indicating a lack of understanding.”
How Does Bitcoin Perform Historical Patterns?
Sigel further explained that Bitcoin has historically shown a negative correlation with the US dollar and a positive correlation with the money supply’s growth (M2). He noted that a surge in money supply could greatly impact Bitcoin’s price trajectory.
“There has been a reduction in Bitcoin selling from both the German and US governments, totaling $2 billion, which may benefit the market as elections draw near,” Sigel remarked.
Sigel predicts Bitcoin may replicate the pattern observed during the 2020 elections, where it began with low volatility before experiencing a dramatic price increase once election results were confirmed.
- Bitcoin’s current price is $70,045.
- Potential pro-crypto policies could boost Bitcoin valuations.
- Historical trends indicate a pattern of volatility during election cycles.
With these insights, market participants are encouraged to monitor Bitcoin’s movements closely as the election date approaches.