Matthew Sigel, head of digital asset research at VanEck, has noted that Bitcoin (BTC) adoption is mirroring patterns observed in the video game industry.
According to Sigel, younger investors are increasingly embracing crypto assets, while older generations are gradually stepping back. On October 28, he shared these insights during an appearance on CNBC’s “Squawk Box.”
“Just as new gamers are emerging every day, new BTC buyers are continually entering the market, which is very bullish for BTC,” Sigel stated.
He elaborated on his perspective via social media, comparing BTC adoption to gaming behavior. “The interesting thing about gamers is that they don’t stop playing at age 50, and they certainly don’t stop investing,” he explained. This analogy, once applied to gaming stocks, is now being used to describe the influx of younger investors into Bitcoin.
Sigel also highlighted that the upcoming U.S. presidential election could serve as a pivotal trigger for significant fluctuations in BTC value. When asked about the correlation between BTC and risk assets, he explained that the approaching election positions BTC in a “very bullish setup.”
As BTC’s correlation with the Nasdaq index has increased over time, Sigel pointed out this trend over the past decade. “Over a ten-year span, the correlation between the Nasdaq index and BTC was 0.19, relatively low. However, in the past three months, that correlation has risen to 0.5, a new high in two and a half years, which might lead some investors to stay cautious as they anticipate a BTC decline.”
Sigel believes this rising correlation could be a potential precursor to a bullish rebound, similar to patterns observed after the results of the 2020 U.S. presidential election, when BTC experienced significant volatility.
The outcome of the upcoming election may again draw new buyers into the crypto asset market, potentially triggering a substantial rebound.
He added, “I believe Moody’s might downgrade the U.S. sovereign debt rating post-election, which could further encourage investors to view BTC as an alternative store of value.”
Combining rising correlation, election outcomes, and the potential for debt downgrades creates favorable conditions for increased BTC adoption and investment.
-
-
-
-
-
-
-
-
