Emily Walker
In a recent chat on CNBC’s “Squawk Box,” Matthew Sigel, who leads Digital Assets Research at VanEck, expressed his belief that Bitcoin’s ongoing rally has only just begun. He anticipates this trend will persist for at least the next two quarters. On Wednesday, Bitcoin’s price briefly exceeded $93,000 before a slight drop, representing a remarkable increase of over 150% this year.
VanEck’s Optimistic Outlook on Bitcoin
According to Sigel, “We believe this is just the beginning. Following the election, Bitcoin experienced expected volatility and is now in a phase without technical resistance. We foresee multiple new all-time highs within the upcoming two quarters.”
He compared the current situation to Bitcoin’s performance four years earlier when the digital currency doubled in value from the election until the end of 2020, despite encountering 6-10 corrections during that period. Sigel mentioned that various indicators still suggest a continuation of the current rally, noting, “Since the election, we’re up 30%, and many indicators we monitor remain optimistic.”
A notable component of this positive forecast is the perceived increase in government favor towards Bitcoin. Sigel pointed out, “This marks a shift in government backing,” mentioning pro-Bitcoin sentiments from significant figures in the current administration, including the Vice President and Attorney General.
He also highlighted the anticipated reduction of “regulation by enforcement” from bodies like the SEC, which he believes will benefit the industry. “We’re already witnessing its positive economic effects,” he stated, pointing to new crypto projects planning US conferences and opening offices, enhancing job opportunities and GDP.
There is also growing institutional interest in Bitcoin. Sigel observed a rise in inquiries from investment advisors looking to either start or enhance their Bitcoin investments through spot Bitcoin ETFs. “I’m increasingly receiving calls from advisors wanting to elevate their Bitcoin allocations,” he clarified.
In terms of market sentiment, Sigel noted that mainstream interest has yet to match previous peaks, indicating potential for further growth. “Google search volumes aren’t close to what they were four years ago,” he pointed out, alongside Coinbase’s rankings in app stores.
VanEck has set a price target of $180,000 for Bitcoin during this bullish period, a level Sigel believes could be reached next year. He remarked, “That would mean a 1,000% return from the low to the high of this cycle, which is still modest for Bitcoin.”
The conversation also addressed possible shifts in regulation, including the potential exit of SEC Chair Gary Gensler. Sigel indicated that while “disappointment may arise one to two quarters post-inauguration,” the reduction of regulatory burdens would ultimately be beneficial. “Eliminating the fear of legal action for undefined rules will enhance market dynamism,” he added.
Furthermore, Sigel discussed the broader repercussions of endorsing Bitcoin as a reserve asset, which could facilitate its use as a global currency, akin to actions taken by BRICS nations. He also noted the complementary relationship between Bitcoin and artificial intelligence. “President Trump acknowledges the connection between Bitcoin and AI; they complement each other,” he asserted. “If you’re aiming for cost-effective AI, leveraging Bitcoin mining for affordable energy is essential.”
As of the latest update, Bitcoin was priced at $90,816.