Bitcoin set to hit a key level by next year as fiscal worries prop up crypto
Bitcoin could hit 100,000 by next year, VanEck’s Matthew Sigel forecast on Friday, highlighting that fiscal worries were supporting the world’s largest cryptocurrency. Volatility in bitcoin, which has fallen by 50% compared to four years ago, is signaling a major difference from the last cycle, as governments are “over indebted” resulting in the cryptocurrency “kind of hanging in,” Sigel, head of digital assets research at the investment management firm, told CNBC’s ” Squawk Box Asia .” People are “really paying up” for puts versus calls and the Treasury bond buyback program has caused “a lot of short covering,” which reminded people that the calendar is “very much in your favor if you’re a bitcoin bull.” “Very unlikely that policymakers are going to address this unsustainable fiscal dynamic, and then as and if liquidity eases, you know that would be a turbocharge for bitcoin.” Sigel said that while bitcoin is a very volatile asset, conversations with institutional clients, from advisors to sovereign wealth funds indicate that they are all buying. VanEck also expects stablecoins to grow because of a “dysfunction” dynamic between lawmakers and the banking lobby. “What a remarkable irony that the legislators were fighting over stablecoin rules that have already become law with the Genius Act last year,” Sigel said, adding that the banking lobby was trying to “retrade” the deal Earlier this week, the U.S. Senate failed to advance the Clarity Act, which seeks to establish a clear regulatory and market-structure framework for cryptocurrencies and digital assets.
