VanEck’s head of digital assets research, Matthew Sigel, recently shared his view on bitcoin (BTC) ahead of the United States presidential election. In a recent interview with CNBC, Sigel noted that the crypto asset’s patterns mirrored the pre-election rally four years ago.
He referenced several factors that could drive BTC price movement amid the election, such as economic conditions, market behavior, and growing institutional interest.
BTC Climbs Higher
Sigel further shared his insights as BTC climbed above $69,100, with the leading cryptocurrency holding firm despite recent downward pressure. Whether the crypto asset can hit the $70,000 level before November 5, 2024, remains unknown.
“This is a very bullish setup for Bitcoin into the election. We saw the exact same pattern in 2020 where Bitcoin lagged with low volatility, and then once a winner was announced, we had a high vol rally as new buyers came into this market,” Sigel said.
Commenting on the recent surge and its correlation with betting odds favoring a Donald Trump win, Sigel said that the connection holds.
Trump as a More Pro-Crypto Candidate
The VanEck executive referred to Trump as a more pro-crypto candidate than Vice President Kamala Harris.
Segil noted that bitcoin’s most significant long-term correlation is a negative correlation with the U.S. dollar and a positive correlation with money supply growth.
He further stated that the Federal Reserve’s policy shift and seller exhaustion—particularly after the German government’s significant sell-off—signal a potential reacceleration in money supply growth.
Sigel mentioned that the rating agency Moody’s is poised to downgrade U.S. sovereign debt, a development that could enhance BTC’s bullish outlook.
Can BTC Price Hit These Highs?
Several Bitcoin enthusiasts have recently predicted that the digital asset will hit new highs. For instance, Robert Kiyosaki, a famous American businessman and the author of the popular financial book Rich Dad Poor Dad, predicted that BTC would reach $105,000 by August 2015.
American billionaire entrepreneur and MicroStrategy’s executive chairman Michael Saylor continues to boost optimism in crypto and bitcoin adoption. Saylor believes that BTC will hit $13 million in two decades.
