Bitcoin’s record-breaking rise since the United States elections is expected to continue, with investment manager and fund issuer VanEck targeting a price of $180,000 for sometime next year. “It is just getting started,” VanEck’s head of digital assets research, Matthew Sigel, told CNBC’s Squawk Box on Nov. 14. “We’re now in blue sky territory, no technical resistance, and we think we are likely to make repeated all-time highs over the next two quarters,” he added.
The broader cryptocurrency market has also seen a boost, with Bitcoin reaching an all-time high above $93,000. Experts believe that Trump’s positive stance on digital currencies and his plans to establish a Bitcoin strategic reserve have contributed to this surge. Bitcoin’s recent performance has reignited interest among investors, and its future looks promising, especially with continued support from influential figures like Musk.
Bitcoin has risen about 30% since Nov. 5, leading a wider crypto rally after the pro-crypto Donald Trump was elected president. It’s continued to reach new highs, with its current peak set on Nov. 13, hitting almost $93,490, per TradingView. Bitcoin’s rally has slightly cooled as of Nov. 15, with it trading around $88,100.
In the wake of Donald Trump’s recent presidential victory, Bitcoin (BTC) has experienced a significant surge in value. The cryptocurrency, which has been a focal point for many investors, has more than doubled in price, rising from under $16,000 to nearly $38,000. This remarkable increase is attributed to Trump’s pro-crypto stance and his ambitious plans to make the United States a “crypto capital” with a Bitcoin strategic reserve.
Elon Musk, a long-time advocate for Bitcoin, has played a crucial role in its recent rise. Following Trump’s victory, Musk was appointed to lead a new initiative called the “Department of Government Efficiency” (DOGE), which aims to enhance government operations. Musk’s involvement has further fueled interest in Bitcoin, as he has been a prominent supporter of the cryptocurrency and has frequently promoted it on social media.
Musk’s influence on Bitcoin cannot be overstated. His tweets and public endorsements have historically caused significant fluctuations in the coin’s value. For instance, his tweet in early 2021, calling Bitcoin “the people’s crypto,” led to a massive spike in its price. His continued support and involvement in the cryptocurrency space have solidified his role as a key figure in Bitcoin’s journey.
What is VanEck’s Sigel View?
VanEck’s Sigel said the number of calls he’s getting from investment advisers who either have no Bitcoin exposure or want to increase it is “starting to accelerate, and we think the flows are going to follow.” Sigel said VanEck expected a post-election pump, and it’s currently following the same pattern as after the 2020 elections, when it doubled in the months between voting day and year-end.
“Our target is $180,000. We think we could reach that next year,” he added. “That would be a 1,000% return from the bottom to the peak of this cycle, that is still the smallest Bitcoin cycle by far.” He said a number of indicators that VanEck tracks “are still flashing green for this rally to continue.”
Bitcoin’s development team has been working on several upgrades to improve the coin’s functionality and security. One of the key developments is the implementation of the Bitcoin-Ethereum bridge, which will allow users to transfer Bitcoin to the Ethereum network and use it in decentralized finance (DeFi) applications. This bridge is expected to increase Bitcoin’s utility and attract more users to the platform.
Another significant development is the introduction of the Bitcoin Core 1.14.5 update, which aims to reduce transaction fees and improve the overall efficiency of the network. These technological advancements are crucial for Bitcoin’s long-term success and adoption.
Despite the positive outlook, Bitcoin faces several challenges. The cryptocurrency market is highly volatile, and prices can fluctuate rapidly based on market sentiment and external factors. Regulatory changes and government policies can also impact Bitcoin’s value and adoption. Additionally, Bitcoin’s status as a leading cryptocurrency means it faces competition from other digital assets, which could affect its long-term viability.
Bitcoin’s recent surge following Trump’s election victory highlights the impact of political developments on the cryptocurrency market. With Trump’s pro-crypto policies and Musk’s continued support, Bitcoin is poised for further growth. However, as with all cryptocurrencies, investors should remain cautious and stay informed about market trends and potential risks.
Bitcoin’s journey from a niche digital asset to a mainstream investment is a testament to the power of community and influential endorsements. As the coin continues to evolve and adapt to new developments, its future remains bright. Whether it will reach new heights or face challenges along the way, Bitcoin’s story is far from over.