VanEck Sees Bitcoin As Key Global Reserve Asset, Projecting $3 Million Price Tag By 2050

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As a seasoned researcher with years of experience in the digital asset space and a keen eye for market trends, I find Matthew Sigel’s analysis both insightful and intriguing. His perspective on Bitcoin’s trajectory, particularly in relation to the US presidential election and broader economic factors, aligns with my own observations.

In a recent CNBC interview, Matthew Sigel, leader of digital asset research at financial firm VanEck (which manages crypto ETFs), offered his perspective on Bitcoin‘s possible future direction considering the upcoming U.S. presidential election and broader economic trends. With Bitcoin currently nearing $70,000 after a temporary dip, this insight is particularly relevant.

Bitcoin Recovery Tied To M2 Growth And Seller Exhaustion

Signal pointed out a connection between the increased odds for ex-President Donald Trump over Vice President Kamala Harris in betting surveys, and the growth of Bitcoin. He described Trump as the strongest advocate for cryptocurrencies, implying that his potential policies could support the crypto market.

Instead, Sigel showed doubts regarding Harris’s comprehension of Bitcoin, hinting that her leadership might not place high importance on matters related to cryptocurrencies.

Examining the factors influencing Bitcoin’s price fluctuations, Sigel emphasized some significant relationships. He noted that Bitcoin’s value tends to decrease when the U.S. dollar strengthens, while it increases alongside global M2 money supply growth, which currently contributes to its upward trend.

Sigel too believes that the latest surge in Bitcoin prices is due to the Federal Reserve’s shift towards faster expansion of M2 money supply, combined with what he referred to as a present “exhaustion among sellers” in the Bitcoin market.

As a crypto investor, I’ve noticed an intriguing bullish potential for Bitcoin as the election nears. Particularly, its increasing correlation with the Nasdaq is worth mentioning, peaking at a two-year high of 1.5.

Sigel remembered a comparable trend from the 2020 elections, in which Bitcoin showed minimal price fluctuations until the election result was declared, triggering a significant surge as more investors rushed into the market. “New investors are constantly emerging,” he underscored, suggesting a continuous influx of interest towards Bitcoin.

In conversation about Bitcoin’s connections with gold and M2, Sigel referred to it as a “shape-shifter,” emphasizing its ability to change its associations, which may alter over time. This flexibility makes it difficult to precisely foretell Bitcoin’s short-term and long-term actions.

$180,000 Post-Election, $3 Million By 2050

Besides the internal workings of American politics, Sigel also highlighted the latest actions within the BRICS intergovernmental association, notably the participation of newcomers such as Argentina, the UAE, and Ethiopia in Bitcoin mining activities.

As a crypto investor, I’ve observed that certain nations are strategically using their governmental resources to mine Bitcoin, aiming to offset what they perceive as the “excessive” or “irresponsible” fiscal policies of the U.S.

Sigel additionally highlighted Russia’s intentions to allocate funds from its national wealth reserve towards Bitcoin mining via BRICS, suggesting the potential for worldwide commerce to be conducted using Bitcoin as a medium.

As a researcher delving into the realm of cryptocurrencies, I recently discussed potential future price points for Bitcoin with Sigel. He pointed out that previous market rallies have seen Bitcoin’s value increase by roughly 2,000%. If we assume that Bitcoin might only attain half of that growth after the election, it could potentially soar to approximately $180,000.

In the future, Sigel mentioned a forecast from VanEck’s digital asset research group, indicating that by the year 2050, Bitcoin might be utilized as a reserve currency in global trade and held by central banks at around 2%. If this model holds true, it implies an astonishing price of approximately $3 million per Bitcoin.

At the time of writing, BTC is trading at $68,900, up 1.7% over the past 24 hours. 

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2024-10-29 10:34