MatthewSigel,headofdigitalassetsresearchatVanEck,hasprojectedthatBitcoincouldreachavalueof$3millionby2050.Inhisanalysis,hepredictedthatBitcoinwouldbecomeareserveasset,ownedbycentralbankswitha2%sharetostrengthentheglobaleconomicsystem.
DuringhisrecentinterviewonCNBC,Sigelrevealedthathispricetargetisbasedonaconservativemodel.AccordingtoSigel’sprojection,therateofgrowthislikelytobe16%peryearoverthenextfewdecades.HebelievesthatthisgrowthpathisplausibleduetothepositionofBitcoinasaninflation-proofasset,whichmaycomeintoitsownastheworldeconomychanges.
“Thatsoundsextreme,”Sigelsaid,“butthat’sa16%compoundannualgrowthrateforacoupleofdecades…sointothemillionsoverthemediumtermisahighconvictioncall.”
Sigelnotedthattraditionally,Bitcoinhasalwaysdonerelativelywellduringperiodsofheightenedmarketvolatility,includingtheelectoralprocess.Similarly,theperformanceofBitcoinin2020alsodemonstratedlowvolatilitybeforetheelectionandthenariseinvalue.Ifthepatternistobefollowed,SigelanticipatesasignificantnewwaveofbuyersinthedaysaftertheelectionasthepriceofBitcoinrises.
\"Thisisaverybullishsetupforbitcoinintotheelection.Wesawtheexactsamepatternin2020wherebitcoinlaggedwithlowvolatilityandthenonceawinnerwasannounced,wehadahighvolrallyasnewbuyerscomeintothismarket,\"says@matthew_sigelof@vaneck_us.pic.twitter.com/EcIzPAGAq0
—SquawkBox(@SquawkCNBC)October28,2024
BRICSexpansioncouldcatalyzeglobalBitcoinadoption
WhenanalyzingtheglobalpositioningofBitcoin,Sigelpointedoutthelimitednumberofcoinswhichis21million,afactorthatmanypeoplebelievemakesitagoodstoreofvalueagainstcurrencydepreciation.SigelnotedthatwiththerecentadditionofArgentina,UAE,andEthiopiatotheBRICScountries,therewasagrowinginterestinBitcoinasadollarsubstituteinemergingmarkets.
MembercountriesoftheBRICShavebeenlookingforwaystotrade,withBitcoincomingupasanoption.Forinstance,RussiaisusingitssovereignwealthfundtoinvestinregionalprojectsthatcanincludeBitcoinminingandAIinfrastructureandisplanningtouseBitcoinforsomepartofthetradesettlements.
Sigelfurtherstated,“SothereistremendousurgencyoutsideoftheUStofindawaytocircumventtheirresponsiblefiscalpolicythatwe’vebeenrunninghereintheUS.”
MatthewSigel@matthew_sigelon#Bitcoinandtheelectionsetupon@CBSNews
–MoodydowngradetoAAafterelectioncatalyst
–BricsmovingaheadwithBitcoinpic.twitter.com/xoqGRFMXPh—MartyParty(@martypartymusic)October28,2024
SigelalsoservedawordofcautiontotheUnitedStates,notingthatifthecountryfailstoembracethesedynamics,thenitmayrisklosinginfluenceintheglobalfinancialsystem.InthecasewheretheBRICScountriesaretosolidifytheusageofBitcoinasareserveasset,theU.S.mayexperienceastrategicthreatinthelongterm.
InresponsetoaquestiononthepossiblefuturepriceofBitcoin,Sigelremainedhopeful,citinghistoricalrallydata.TheleastrallyfromthebottomtothepeakforBitcoinwasabout2000%.Evena1,000%gainwouldbringBitcoin’spricetonearly$180,000.Hebelievesthepost-electionenvironmentcouldbethebiggestdriverforBitcoininthenearfuture,andthecryptocurrencymaysurgetohighsof$200,000inthefuturecycles.
cryptopolitan.com