The chief executive of the financial giant VanEck is remaining bullish on Bitcoin (BTC) and says its recent correction into the $50,000 range is not surprising.
In a new interview on CNBC Television, VanEck CEO Jan van Eck says that Bitcoin’s double-digit correction has historical precedence in prior bull market cycles.
He believes Bitcoin’s decline this month was caused by the German government selling Bitcoin it confiscated earlier this year and the defunct crypto exchange Mt. Gox settling with creditors. But he says the strong performance of spot Bitcoin exchange-traded funds (ETFs) plus the likelihood of the Fed cutting rates before the year’s end are reasons to still be bullish.
“It’s like fuel for Bitcoin and gold investors, the Fed easing. So it’s super bullish. Bitcoin got some selling from the German government, there was the Mt. Gox selling – short-term stuff. But we’ve seen only a 20% correction in the Bitcoin price, and that’s kind of normal in a bull market. At VanEck, we like to say we’re hodling, which is holding on for dear life. So we’re long-term investors, and all the [spot BTC] ETFs pretty much have seen inflows, including last month, when the price was down 10%. So it’s a drip from retail investors.”
Bitcoin is trading for $58,079 at time of writing, up slightly in the last 24 hours.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Generated Image: Midjourney