According to a recent blog post by VanEck’s Digital Assets Investment Analyst Nathan Frankovitz and Head of Digital Assets Research Matthew Sigel, Bitcoin is in a strong rally following the US elections. The analysts predict that the price of Bitcoin may rise to $180,000, supported by a more favorable regulatory environment and increasing adoption.
Post-election rally in unknown territory
Bitcoin’s price hit a new high around $75,000 on election night, rising 9%. According to VanEck, this occurred after market opportunities on Polymarket showed that Trump would win the presidential election. VanEck notes that this pattern resembles that of four years ago, when Bitcoin doubled between the 2020 election and the end of that year, then rose another 137% in 2021.
The analysts emphasize that Bitcoin is now operating in uncharted territory, with no technical resistance in sight. According to them, this makes it likely that the rally will continue. The rising demand for Bitcoin among institutional investors also plays an important role in this, as VanEck reports that they are receiving more inquiries from investors who feel under-allocated in digital assets.
Pro-crypto policy under Trump
Donald Trump’s victory appears to mark a turning point in the American crypto market. Trump pledged during his campaign to make America “the world capital for crypto and Bitcoin” and to end strict SEC regulations. According to VanEck, Trump is already starting to appoint pro-crypto figures to important positions within the government, which increases the chance of supportive legislation.
VanEck also points to legislative proposals, such as the creation of a national Bitcoin reserve, the chance of realization of which is estimated at 34% on Polymarket. In addition, they expect regulatory barriers such as SAB (Staff Accounting Bulletin) to be removed within the first quarter of Trump’s presidency.
International dynamics and strategic opportunities
In addition to internal developments in the US, VanEck notes that countries such as the BRICS group are exploring Bitcoin and stablecoins as an alternative to the US financial system. Stablecoins are seen as a strategic opportunity to strengthen the US dollar globally by enabling digital exports.
Market indicators and future expectations
The analysts point to strong market indicators that support the bullish trend:
- Bitcoin Dominance: The 7-day moving average rose 2 points this month to 59%, the highest level since March 2021.
- Regional trade dynamics: Traders in Asian market trading are significantly increasing their Bitcoin holdings, supporting the rally.
VanEck sticks to their price target of $180,000 per Bitcoin in this cycle, stating that the current election marks a turning point for the US crypto market. They see this as the beginning of a period in which previous challenges, such as the loss of capital and jobs, are transformed into new opportunities for growth and innovation.
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Source: https://newsbit.nl/vaneck-voorspelt-180k-voor-bitcoin-regelgevingswind-wordt-gunstig/
