VanEck’s head of research says the Bitcoin bull run has just begun.
Matthew Siegel predicts that the Bitcoin bull run will continue for at least two more quarters. Institutional interest is growing, with advisors considering 1-3% Bitcoin allocations. VanEck targets Bitcoin at $180,000, predicting a 1,000% rally from market lows.
In a recent CNBC “Squawk Box” interview, Matthew Siegel, head of digital assets research at VanEck, predicted that the current Bitcoin rally is in its early stages.
Bitcoin (BTC) recently surpassed $93,000, posting a whopping 150% gain this year before experiencing a minor correction, and Siegel predicts at least two more quarters of continued growth.
Change in government support and increase in institutional demand
As the asset doubled between the election and the end of the year, Siegel drew comparisons to Bitcoin's performance in 2020.
“We are now in a region where we have no technical objections. “We expect to see new all-time highs in the next two quarters,” Siegel said. He also noted that while previous rallies have included 6-10 corrections, the current market indicators under VanEck's control are still showing strong upward momentum.
A significant factor behind this positive outlook is what Siegel describes as “government support for government change.” Key figures in the incoming Donald Trump administration, such as the vice president, attorney general and national security adviser, have indicated that they support Bitcoin.
This change, along with the expected end of “regulation by enforcement” from agencies like the SEC, could boost industry confidence and expansion. “We're already seeing economic benefits,” Siegel said, adding that crypto projects are planning US-based conferences and new office openings.
Institutional interest in Bitcoin is also growing. Siegel reports an increase in inquiries from investment advisors planning to allocate 1-3% of their portfolios to Bitcoin, indicating the potential for future capital outflows.
Despite the rise in prices, prime interest has not yet reached previous highs. “Google searches and Coinbase app rankings are still below their historical highs,” he said, pointing to more room for growth.
VanEck projects Bitcoin could reach $180,000
Van Eyck has set a price target of $180,000 for Bitcoin during this bull cycle, which represents a 1,000% increase from the bottom of the market.
Even at this point, Siegel said the current cycle would be too small compared to past ones, leaving room for further optimism.
