The head of digital assets research at exchange-traded fund (ETF) provider VanEck says that Bitcoin (BTC) is looking bullish ahead of the US presidential election.
In a new interview on CNBC’s Squawk Box, VanEck executive Matthew Sigel says that Bitcoin may be gearing up for an explosive breakout partially due to a potential Donald Trump election victory on November 5th.
[adinserter block="1"]Republican presidential nominee Trump is generally considered more pro-crypto than Democratic challenger Vice President Kamala Harris.
“Trump is clearly the more pro-crypto and Bitcoin candidate and VP Harris has not said a single word on it, so one doubts whether she truly understands it.
But to your question about the correlations, the most significant long-term correlations for Bitcoin are a negative correlation with the US dollar and a positive correlation with money supply growth, or M2. So clearly, on the latter front money growth has re-accelerated with the Fed pivot. That may be playing part of a role. [There’s] also some sellers exhaustion. The German government and the US government sold – spitefully – $2 billion worth of Bitcoin in the last couple months. That has eased, and I think the election is helping.”
He also says that Bitcoin may be repeating a pattern from 2020 of low volatility leading up to the election before entering into a strong uptrend once a winner began to emerge.
“Our bet is that this is a very bullish setup for Bitcoin into the election. We saw the exact same pattern in 2020 where Bitcoin lagged with low volatility, and then once a winner was announced we had a high volume rally as new buyers come into this market. And that’s the great thing about Bitcoin, is that every day there’s new buyers being born.”
Bitcoin is trading for $68,694 at time of writing.
Follow us on X, Facebook and Telegram
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
