VanEck, a prominent asset management company, predicts that the upcoming US election will lead to new record highs for Bitcoin (BTC), as stated by the firm’s head of digital asset research. VanEck believes that the recent decline in Bitcoin and other digital assets is a result of government selling in relatively thin markets around the 4th of July. The German government has been aggressively selling off its confiscated Bitcoin, contributing to the downward trend. VanEck acknowledges that BTC rarely falls below its 200-day moving average during bull markets, but if government selling persists and negative news continues, the price could breach the current level of around $36,000.
However, VanEck highlights several positive factors that could support BTC in the future. These include a likely soft landing for the US economy, a potential reversal in monetary policy, and the possibility of a Trump presidency in November. The firm expects the election to trigger new all-time highs for BTC, as the market anticipates four more years of deficit spending and potentially more favorable regulations under a Trump administration.
In addition, Bitcoin adoption is growing in emerging and frontier markets. Kenya, Ethiopia, and Argentina have all announced this year that they are mining Bitcoin using government-owned energy.
VanEck recommends a dollar cost averaging strategy for buying Bitcoin, suggesting a target weight of 6% for BTC and ETH in most 60/40 benchmarked portfolios.
As of now, Bitcoin is trading at $55,898.
Disclaimer: The opinions expressed in this article are not investment advice. Investors should conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. Transfers and trades are at the individual’s own risk, and any losses incurred are their responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it provide investment advice. Please note that The Daily Hodl engages in affiliate marketing.
