Investment firm VanEck reports a “very bullish setup” for Bitcoin as the United States approaches the 2024 presidential election, with Bitcoin’s price already nearing all-time highs. Matthew Sigel, VanEck’s head of digital assets research, explained to CNBC on October 28 that Bitcoin’s strong momentum could continue post-election, resembling the high-volatility rally that followed the 2020 election.
Bitcoin’s Price Momentum Builds Amid Election Speculation
Bitcoin’s price broke through $69,000 on October 28, fueling speculation of a potential run to its previous peak as the U.S. election draws closer. Sigel noted that Bitcoin’s recent 100% increase over the past year appears linked to improved odds for former President Donald Trump on betting platforms like Polymarket and Kalshi. Trump, a Republican candidate and self-proclaimed crypto supporter, is leading with a 62–66% chance of winning according to betting market data.
Sigel remarked, “Our bet is that this is a very bullish setup for Bitcoin going into the election. We saw a similar pattern in 2020: Bitcoin was quiet, then surged with high volatility once a winner was announced.”
Bitcoin as a Long-Term Asset: VanEck’s $3 Million Price Model
Beyond the short-term election buzz, VanEck envisions a transformative future for Bitcoin. In a July 2023 report, VanEck projected Bitcoin could reach $3 million per coin by 2050 if it becomes a global reserve asset. This forecast relies on Bitcoin gaining a 2% allocation within global central bank reserves, where it could serve as both collateral for trade settlements and a hedge against inflation.
Sigel explained that in such a scenario, Bitcoin’s decentralized nature and limited supply would position it as a vital asset for central banks. VanEck’s long-term model sees Bitcoin as a reserve that could replace or supplement traditional assets in a high-inflation environment.
Hedge Funds and Analysts See Inflation Driving Demand for Bitcoin
Inflation remains a major factor boosting interest in Bitcoin and other commodities. Hedge fund manager Paul Tudor Jones emphasized on CNBC’s Squawk Box that inflation would keep driving asset demand, including for Bitcoin, as a safer alternative to fixed-income investments. He commented, “I would own zero fixed income and instead hold a basket of assets like gold, Bitcoin, commodities, and tech stocks.”
With Bitcoin experiencing consistent growth, both VanEck’s long-term model and analysts like Jones see a future where Bitcoin’s decentralized stability and hedge potential attract global demand, establishing it as a key financial asset by mid-century.
