Two Wall Street analysts predict that Bitcoin could surge an additional 95% within the subsequent 18 months, excluding MicroStrategy's Michael Saylor's predictions.
Bitcoin, the reigning king of cryptocurrencies (BTC 0.16%), has been on an electrifying journey since Donald Trump secured the presidency on November 5th. Post-election, Bitcoin soared nearly 45%, flirting with the six-figure mark at $100,000 before settling around $92,000 (as of November 26th). Despite its volatility and lack of inherent value, some analysts believe this surge might just be getting started, with Bitcoin breaching the $100,000 milestone and bounding even higher within the next 18 months.
While the outspoken bullish calls by MicroStrategy's Michael Saylor for Bitcoin reaching $13 million over two decades have made headlines, more recent endorsements come from two Wall Street heavyweights, Matthew Sigal and Nathan Frankovitz from the revered firm, VanEck. Their bullish prediction? Bitcoin should soar to an astonishing $180,000.
Bullish Crescendo
In their report, Sigal and Frankovitz at VanEck's Digital Assets group present their cycle price target, alluding to an impressive 95% upside. They anticipate this bull run to occur within the next year and a half. Their optimism stems from surging investor interest and an increasingly favorable sentiment towards Bitcoin.
... Bitcoin's meteoric ascent in a post-election frenzy has left no technical resistance in its wake, potentially heralding the onset of a new phase in the bull market. Such a pattern echoes the phenomenon witnessed in 2016, when Bitcoin's price doubled between the election and year-end, followed by an additional 137% rise in 2021. However, the current surge in investor interest appears exponential, prompting Sigal and Frankovitz to speculate that this bull run may not be over yet.
Correlation and Expectations
Exploring the link between search interest in "crypto" and Bitcoin's price movements, VanEck finds a strong empirical connection between the two. Spikes in the popularity of the term "crypto" on Google typically coincide with market highs and heightened retail interest in the sector. Subsequent corrections, however, usually ensue following these peaks. Interestingly, while the current popularity of "crypto" is far from its all-time highs, Sigal and Frankovitz argue that the market has yet to enter the "speculative mania" phase, implying ample room for further growth before reaching market heights commonly associated with market peaks.
A Regulatory Shift
With President Trump's impending occupancy, VanEck expects the regulatory environment to shift from a hindrance to a catalyst. Gary Gensler, the incumbent Securities and Exchange Commission (SEC) chair, is rumored to step down upon Trump's inauguration. Sigal and Frankovitz suggest that this would effectively transfer the regulatory winds from headwinds to tailwinds.
Moreover, the chances of repealing the SEC's Staff Accounting Bulletin (SAB)-121 – a regulation that could require financial institutions to declare crypto assets as liabilities, potentially imposing stricter capital and liquidity requirements – seem promising under Trump's administration. Significantly, the repeal of SAB-121 could encourage more banks to introduce crypto custodial services.
Uncertain Price Targets
While their bullish sentiments paint a rosy picture of Bitcoin's future, Sigal and Frankovitz caution against placing too much faith in their $180,000 price target. Gauging the price movement of such a volatile asset like Bitcoin is notoriously challenging, they admit. Nonetheless, they remain optimistic about Bitcoin's potential to emerge as a solid long-term asset, citing factors like burgeoning liquidity via ETFs, increased mainstream financial institutions' interest, the growing perception of Bitcoin as a hedge against inflation, and a more favorable regulatory landscape. Of course, investors should always retain a healthy dose of caution in the face of Bitcoin's notorious volatility.
In light of VanEck's analysis, some investors might be tempted to allocate a portion of their finance into Bitcoin, seeing its potential for significant returns. Following the bullish predictions by Matthew Sigal and Nathan Frankovitz, investing in Bitcoin could potentially yield profits beyond the current $92,000 mark, potentially even reaching $180,000.
