VanEck, a major player in asset management, predicts that the upcoming US election will trigger a surge in Bitcoin’s value, according to the firm’s head of digital asset research. In a letter to investors, VanEck suggests that the recent decline in Bitcoin and other digital assets is a result of government selling during the relatively quiet period around the 4th of July. The German government recently embarked on a significant sell-off of its confiscated Bitcoin and has continued to offload its holdings relentlessly. VanEck also points out that in bullish market years, BTC rarely trades below its 200-day moving average, but if government selling persists and more negative news emerges, it could breach the current level of around $36,000.
However, the firm believes that there are several positive factors on the horizon for BTC, including a likely smooth landing for the US economy, a potential reversal in monetary policy, and the possibility of a Trump presidency in November. VanEck anticipates that these factors will lead to fresh all-time highs for Bitcoin as the market prices in four more years of deficit spending and potentially more favorable regulatory conditions under a Trump administration.
Meanwhile, Bitcoin adoption is continuing to grow in emerging and frontier markets, with three additional countries (Kenya, Ethiopia, and Argentina) announcing this year that they are mining Bitcoin using government-owned energy.
VanEck recommends a dollar cost averaging strategy for buying Bitcoin, suggesting a target weight of 6% for BTC & ETH in most 60/40 benchmarked portfolios.
As of now, Bitcoin is trading at $55,898.
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