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.
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.
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