- VanEck’s Matthew Sigel believes the U.S. election is a massive bullish catalyst for Bitcoin price
- Sigel sees Bitcoin displaying similar patterns to those leading into the 2020 election, with low volatility before a rally after the winner is announced
- Factors like the Fed’s pivot, seller exhaustion, and potential U.S. debt downgrade by Moody’s contribute to the bullish setup for Bitcoin, according to Sigel
The price of Bitcoin has seen a significant surge in recent days as the US presidential election approaches. Some experts believe the election could act as a catalyst for further growth.
Correlation Between Bitcoin and Election Odds
According to Matthew Sigel, head of digital assets at VanEck, there appears to be a correlation between Bitcoin’s recent price increase and betting odds shifting in favor of Donald Trump. Sigel told CNBC’s Squawk Box that Trump is seen as the more “pro-crypto” candidate compared to Kamala Harris.
Bullish Setup for Bitcoin
In the same interview, Sigel said the current market setup is very bullish for Bitcoin leading up to the election. He pointed to similar patterns in 2020, where Bitcoin saw a volatility spike and surge of new buyers after the election winner was announced.
Macroeconomic Factors Support Bitcoin Growth
Sigel also highlighted some macroeconomic factors that could fuel further Bitcoin growth. These include the US dollar’s weakness, reaccelerating money supply growth, and a potential downgrade of US debt by ratings agency Moody’s.
Bitcoin’s Key Price Levels
At the time of writing, Bitcoin is trading around $68,500, up over 55% year-to-date. It remains to be seen whether bulls can push the price back above the key $70,000 level prior to November 5. The top crypto has weathered recent downside pressure and held support above $67,000.
