As the US prepares for its next presidential election, VanEck, a well-known asset management company, believes that Bitcoin is in a favorable position. The current state of the market indicates that Bitcoin has a lot of potential and might see a big rise akin to the 2020 election cycle, according to Matthew Sigel, Head of Digital Assets Research at VanEck.
According to Sigel, the spot price of Bitcoin has risen above $69,000 in recent times. This surge has coincided with an increase in support for former President Donald Trump, who some perceive as more crypto-friendly than his Democratic opponent, Vice President Kamala Harris. Betting sites are reflecting this shift, with odds favoring Trump’s victory, potentially contributing to the recent rise in Bitcoin’s value.
Bitcoin’s price has historically fluctuated significantly during election seasons. Following the 2020 election results, Bitcoin gained momentum after initially remaining stable. As the current election approaches, Sigel says this trend might recur, and as more players enter the cryptocurrency market after the election, market volatility is probably going to increase.
In addition to the effects of the election, VanEck predicts that Bitcoin may have long-term surges, with a price of around $3 million per unit by 2050. VanEck bases this prediction on the idea that Bitcoin could become a vital reserve asset for international trade and central bank reserves. According to Sigel, Bitcoin might generate enormous demand and solidify its status as a fundamental financial asset even if it only manages to capture a small portion of global central bank reserves.
Furthermore, the overall state of the economy appears to be in favor of Bitcoin. Potential downgrades of U.S. debt, high rates of inflation, and the Federal Reserve’s changing monetary policies might all make Bitcoin a more alluring hedge against economic instability. The well-known hedge fund manager Paul Tudor Jones agrees, suggesting a variety of assets, including Bitcoin, as a hedge against inflation.
VanEck is bullish about Bitcoin’s future in finance as it continues to gain popularity as a possible substitute for conventional safe-haven assets like gold. It’s possible that Bitcoin will reach new heights sooner rather than later due to a stable market structure and rising institutional interest.
