Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
According to Matthew Sigel, head of digital assets research at VanEck, the adoption of Bitcoin (BTC) mirrors trends seen in the video game sector, with younger investors increasingly engaging with cryptocurrency while older demographics gradually withdraw.
During an appearance on CNBC’s “Squawk Box” on Oct. 28, Sigel noted that just as new gamers are introduced daily, fresh Bitcoin purchasers are emerging, contributing to a “very bullish setup” for Bitcoin.
Sigel elaborated on his statements through social media, likening Bitcoin adoption to gaming habits.
“The intriguing aspect of Gamers is that they don’t cease playing in their 50s (for example, Elon Musk). Well, they certainly don’t stop investing!”
He clarified that this analogy is frequently referenced in discussions about gaming stocks and is now being applied to Bitcoin to highlight the ongoing influx of young investors eager to enter the market. He also noted that U.S. presidential elections could act as a significant catalyst for the next substantial shift in Bitcoin’s price.
Related Posts
US elections as a trigger
Sigel utilized these comments to illustrate a “very bullish setup” for Bitcoin as the U.S. presidential elections approach, responding to co-host Joe Kernen’s inquiry about the relationship between BTC and risk assets.
Consequently, the head of digital assets research at VanEck indicated that Bitcoin correlations evolve over time, referencing the increasing correlation of Nasdaq with BTC over the last decade:
“Over a 10-year time frame, the Nasdaq correlation with Bitcoin is a .19, which is relatively low. In the last three months, it has risen to .5, marking a two-and-a-half-year peak, which may be causing some allocators to remain cautious as they await a decline.”
VanEck perceives this rising correlation as a possible precursor to a bullish surge for Bitcoin, akin to the trend seen in 2020 when Bitcoin experienced increased volatility following the U.S. presidential election results. He proposed that the outcome of the upcoming election could once again draw new buyers into the cryptocurrency market, igniting a notable rally.
Sigel also conveyed his expectation that Moody’s Corporation might downgrade U.S. sovereign debt post-election, which could further steer investors toward Bitcoin as an alternative store of value. He considers the combination of rising correlations, election results, and potential debt downgrades as creating an environment conducive to increased Bitcoin adoption and investment.
The post Bitcoin adoption akin to gaming as younger generations drive demand – VanEck appeared first on CryptoSlate.
