bullish

Donald Trump

Bitcoin

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Matthew Sigel, the head of digital assets at VanEck, says the current market setup is very bullish for Bitcoin, the world’s flagship digital asset.
In an <a rel="noopener noreferrer nofollow" href="https://x.com/SquawkCNBC/status/1850873359778681116" target="_blank">interview</a> with CNBC’s Squawk Box on Oct. 28, Sigel pointed to the upcoming U.S. election as likely a major for Bitcoin (<a rel="noopener noreferrer nofollow" href="https://crypto.news/price/bitcoin/">BTC</a>) price.
The VanEck digital assets chief’s comments come as BTC climbed back above $68,000, with the top crypto by market cap weathering recent downside pressure. Whether bulls will reclaim the psychological $70,000 level ahead of the November 5, 2024, election remains to be seen.
Read more: <a rel="noopener noreferrer nofollow" href="https://crypto.news/bitcoin-nears-69k-mark-amid-strong-etf-inflows-and-short-liquidations/"> Bitcoin nears $69K mark amid strong ETF inflows and short liquidations </a>
At its current level of $68,800, Bitcoin’s price is up more than 55% year-to-date and over 100% in the past year. Compared to the previous U.S. election, Sigel sees BTC displaying similar patterns to those leading into the 2020 vote.
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 “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 vol rally as new buyers came into this market,” Sigel noted.
</blockquote>
Regarding Bitcoin’s recent surge and its correlation with betting odds for a Donald Trump win, Sigel told Squawk Box that this does appear to be the case.
Mainly, it’s down to Trump being the more <a rel="noopener noreferrer nofollow" href="https://crypto.news/trumps-pro-crypto-stance-is-gaining-him-votes/">pro-crypto candidate</a> compared to Kamala Harris. Polymarket odds have for instance shifted massively from Harris to Trump, the latter currently at 66%.
However, the VanEck executive sees Bitcoin’s most important correlation being negative with the U.S. dollar and positive correlation with money supply growth, or M2. The Federal Reserve’s pivot and seller exhaustion – mainly after the <a rel="noopener noreferrer nofollow" href="https://crypto.news/mt-gox-and-the-german-government-sunk-the-crypto-market/">dumping by the German government</a> – are pointers to money growth reacceleration.
Sigel also added that rating agency Moody’s is set to downgrade the U.S. sovereign debt, a scenario that could add to the bullish setup for BTC.
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VanEck’s Matthew Sigel: ‘This is a very bullish setup for Bitcoin’

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