VanEck Forecasts US Election Will Drive Bitcoin (BTC) to New Record Levels – Find Out Why
Asset management giant VanEck predicts that the upcoming US election could trigger a surge in Bitcoin (BTC) prices, as stated by the firm’s head of digital asset research in a communication to investors shared on the social media platform X. VanEck suggests that the recent decline in Bitcoin and other digital assets is a result of government selling activities, which they describe as “spiteful” and targeted at relatively illiquid markets around the Independence Day holiday.
In recent weeks, the German government initiated the sale of a significant portion of its seized Bitcoin holdings, and this selling spree has persisted. VanEck highlights that during bullish market cycles, Bitcoin typically maintains levels above its 200-day moving average. However, they caution that sustained government selling and negative news could potentially push the price below the current $36,000 threshold.
Despite these challenges, VanEck points out several positive factors on the horizon for Bitcoin. These include the likelihood of a smooth landing for the US economy, a potential shift in monetary policy direction, and the prospect of a Trump presidency post-November.
The firm anticipates that as inflation eases and the US economy navigates a soft landing, a shift in monetary policy becomes increasingly probable. VanEck expects the election to act as a catalyst for Bitcoin to reach new all-time highs, factoring in expectations of continued deficit spending and a potentially more favorable regulatory environment under a Trump administration.
Moreover, Bitcoin adoption is gaining momentum in emerging and frontier markets, with countries like Kenya, Ethiopia, and Argentina announcing their involvement in Bitcoin mining using government-owned energy sources.
VanEck recommends a dollar-cost averaging strategy for purchasing Bitcoin up to a specified allocation target, suggesting that a 6% position in Bitcoin and Ethereum could be suitable for most portfolios benchmarked at 60/40.
As of the time of writing, Bitcoin is trading at $55,898.
