In a recent discussion with CNBC’s Squawk Box on October 28, Matthew Sigel, who leads the digital assets division at the asset management company VanEck, mentioned that the current conditions in the market are highly favorable for Bitcoin, highlighting the upcoming U.S. election as potentially significant for the cryptocurrency.
"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 come into this market," says @matthew_sigel of @vaneck_us. pic.twitter.com/EcIzPAGAq0
— Squawk Box (@SquawkCNBC) October 28, 2024
His statement followed a 1.67% rise in the Bitcoin price over the past 24 hours. After a notable resurgence on Monday morning, it trades at $68,822 at the time of reporting.
Bullish Outlook for Bitcoin Price
The analyst compared the current market state to the previous U.S. election period, suggesting that Bitcoin (BTC) exhibited similar trends leading up to the 2020 election.
“This is a very bullish setup for bitcoin into the election,” Matthew Sigel affirmed
He mentioned that the Bitcoin market was experiencing low volatility in 2020, but after a winner was announced, it experienced a high volatility rally as new buyers entered the market.
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He further emphasized that the adoption of Bitcoin resembles the video game industry, with new users constantly emerging while those who lack understanding gradually fade away.
I made a point in the CNBC interview today that #Bitcoin adoption resembles the video game industry in that new users are born every day while the Olds who don't understand die off.
— matthew sigel, recovering CFA (@matthew_sigel) October 28, 2024
The interesting thing about Gamers is that they don't stop playing in their 50s (case in point,… pic.twitter.com/et6pQqDfEy
At the same time, the older generation that dislikes it is gradually passing on, and new investors are entering the market daily.
However, he pointed out that the most interesting aspect of this analogy is that gamers continue to play well into their 50s and, at the same time, don’t cease investing.
Supporting his claim with a statistics chart called the “gap of delusion,” he explained the challenges the Olds face in changing their opinions, indicating that when a new group of investors emerges in the market, they may struggle to change their direction.
Echoing this view, Robert Breedlove, the creator of the “What is Money?” show, is convinced that since Bitcoin operates as a game that caters to each player’s self-interest, it’s merely a question of time before everyone gets involved.
Exciting Times Ahead for Digital Assets
Several other developments indicate a rising trend in Bitcoin adoption in the near future, which could elevate its prices to unprecedented heights.
Matthew Sigel pointed out that BRICS recently held a conference in Russia. He noted that six new members possess a GDP that surpasses the collective GDP of the G7.
Among these six new members, Argentina, the UAE, and Ethiopia utilize government resources for Bitcoin mining. This creates a pressing need outside the U.S. to discover methods for evading U.S. fiscal policies.
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