Bitcoin rallies as US elections approach, experts weigh in
- Matthew Sigel, head of digital assets research at VanEck, identified a strong bullish outlook for Bitcoin as the US presidential election approaches.
- Factors contributing to this outlook include rising interest in cryptocurrencies, changes in macroeconomic conditions, and confidence stemming from the candidate's positions, particularly Donald Trump.
- If Trump wins, Bitcoin is projected to reach approximately $80,000, while a victory for Vice President Kamala Harris may initially decrease Bitcoin prices.
In the lead-up to the U.S. presidential election, Bitcoin is anticipated to experience a bullish trend. Matthew Sigel, the head of digital assets research at VanEck, commented that the election scenario is favorable for Bitcoin because of an increase in interest surrounding cryptocurrencies and formative economic conditions driving demand. With Donald Trump viewed as a pro-crypto candidate, confidence among investors appears to be growing. Sigel pointed out that Bitcoin has historically exhibited a negative correlation with the U.S. dollar and a positive correlation with the money supply growth. Recent actions taken by the Federal Reserve to adjust interest rates have contributed to an increase in the money supply, enhancing Bitcoin's potential value. Additionally, government sales of Bitcoin, which totaled around $2 billion, have created a “seller's exhaustion” scenario, providing a further boost to the cryptocurrency’s price. Amidst projections by other financial analysts, Standard Chartered suggested that, should Donald Trump be re-elected, Bitcoin's price could surge to $80,000 shortly after the election. Conversely, a victory for Kamala Harris could initially lead to a decline in Bitcoin prices, with expectations of recovery towards $75,000 by the end of the year. Further, Bitcoin's appeal is expanding globally, including interest from BRICS nations that are investing in Bitcoin mining, reflecting a shift away from dependence on the U.S. dollar.