Bitcoin adoption akin to gaming as younger generations drive demand VanEck
Bitcoin (BTC) adoption is following a pattern similar to the videogame industry, with younger investors increasingly embracing the crypto while older generations gradually exit, according to VanEcks head of digital assets research, Matthew Sigel.
Speaking on CNBCs Squawk Box on Oct. 28, Sigel said that much like how new gamers are born every day, new Bitcoin buyers are emerging, contributing to a very bullish setup for Bitcoin.
Sigel expanded on his comments via social media, comparing Bitcoin adoption to gaming behavior.
The interesting thing about Gamers is that they dont stop playing in their 50s (case in point, Elon Musk). Well, they certainly dont stop investing!
He explained that the analogy is one often used in relation to gaming stocks and is now being applied to Bitcoin to illustrate the continual influx of young investors willing to enter the market. He also pointed out that US presidential elections could serve as a key trigger for the next major move in Bitcoins value.
US elections as a trigger
Sigel used these remarks to explain a very bullish setup for Bitcoin as the US presidential elections are near, as Squawk Boxs co-host Joe Kernen asked about the correlation between BTC and risk assets.
Thus, the head of digital assets research at VanEck stated that Bitcoin correlations change over time, citing the growing correlation of Nasdaq with BTC over the past 10 years:
Over a 10-year time horizon, the Nasdaq correlation with Bitcoin is a .19, quite low. Over the past three months, it is a .5, and thats a two-and-a-half-year high, and that may be keeping some allocators on the sidelines cause they wanna see it fall.
VanEck sees this rising correlation as a potential precursor to a bullish rally for Bitcoin, similar to the pattern observed in 2020 when Bitcoin experienced heightened volatility after the US presidential election results. He suggested that the resolution of the upcoming election could once again attract new buyers into the crypto market, sparking a significant rally.
Sigel also expressed his belief that Moodys Corporation might downgrade U.S. sovereign debt following the election, which could further drive investors toward Bitcoin as an alternative store of value. He views the combination of rising correlations, election outcomes, and potential debt downgrades as setting the stage for an increase in Bitcoin adoption and investment.
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Text source: CryptoSlate
