Matthew Sigel is the head of research for digital assets at VanEck. He believes Bitcoin (BTC), will reach seven figures in five years.
“Bitcoin going up for us is the base case. We think this asset is going to reach a million dollars over the next several years,” Sigel said CNBC Halftime Report Wednesday.
Sigel clarified later that BTC will likely reach this threshold by the end of “half a decade,” Comparing Bitcoin adoption with the video games industry, in which usage expanded beyond younger users after being initially limited to them.
“It’s going to be like the video game industry, where 30 years ago it was just kids playing video games, now Elon Musk plays video games,” He said.
Sigel’s latest projection is in line with VanEck’s baseline model. estimates Bitcoin may reach $2.9m by 2050. This highlights a long-term bullish view despite volatile market periods.
Bitcoins are a cryptocurrency. “mega trend,” But marked by Volatility
Sigel, despite a bullish outlook for Bitcoin at VanEck, stressed that Bitcoin remains a volatile currency. “very cyclical asset,” Saying its path to $1 million wouldn’t be a constant upward movement.
“There are no bailouts in Bitcoin, so it’s going to be cycles along the way,” Sigel hinted at the lack of a central body to stabilise prices in times of market declines.
Source: Matthew Sigel
“We have the first central bank buying Bitcoin for its reserves, so this is a mega trend, but it will be very volatile along the way,” Sigel added.
Market positioning near-term is negative
Sigel, in addressing Bitcoin’s short-term price movement, pointed out that the correlation between the asset and the Nasdaq reached its highest level for five years. This suggests the current rally has been largely driven macroeconomic trends.
“What keeps us encouraged even at the current levels is that we’re not seeing the froth in the derivatives markets,” He said that the movement appears to be driven by short-covering, which indicates that overall positioning is still relatively bearish.
Bitcoin’s BTC all-time prices chart. Source: CoinGecko
Sigel joins a number of other experts who have similar opinions about the price path for Bitcoin in coming years. These include Bernstein, Bitwise Chief Investment Officer Matt Hougan and Jan3 CEO Samson Mow, as well as Twitter Co-Founder Jack Dorsey.
Cathie Wood’s ARK Invest’s Bitcoin 2030 price targets range between about $300,000.000 for a bear scenario to $710,000.000 in a base situation and $1.5million.000 in a bull scenario. according to its Big Ideas 2025 model.
Related: Bitmine’s Tom Lee says ‘crypto spring’ has already begun
Bitcoin is still a controversial topic among some investors. Ray Dalio claimed that Bitcoin could be used as a form of currency, however questioned its ability to scale into a global reserve asset Regulatory and sovereign currency risk. Other people, such as gold-advocate Peter Schiff have also argued. Bitcoin lacks intrinsic value Gold is not likely to replace traditional safe haven assets such as gold. This casts doubt on the seven-figure forecasts.
Magazine: Adam Back says current demand is ‘almost’ enough to send Bitcoin to $1M
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Source: cointelegraph.com
