VanEck Director: US election, money supply changes and Bitcoin mining development drive Bitcoin's rise

Odaily Planet Daily Report: VanEck's digital asset research head Matthew Siegel said that the recent rise in Bitcoin seems to be related to political changes and global economic concerns. Siegel pointed out that the upcoming US election, changes in money supply, and the international development of Bitcoin mining are factors affecting the recent price trend. Regarding the impact of the upcoming US presidential election on the Bitcoin price trend, he explained that historically, Bitcoin has often responded to changes in political sentiment, especially when a candidate seen as more supportive of digital assets has shown an advantage in opinion polls. The recent price trend is consistent with the increased probability of betting on Trump, a candidate who supports cryptocurrencies. "We believe this is a very favorable setup for Bitcoin to enter the election. We saw the exact same pattern in 2020, when Bitcoin underperformed and had lower volatility," Siegel said, "Once the winner is announced, we will experience a high-volatility rebound as new buyers enter the market." He also emphasized the importance of the long-term negative correlation between Bitcoin and the US dollar. He added that periods of US dollar weakness often coincide with Bitcoin price increases, as investors seek alternative stores of value. Another key factor he mentioned is the correlation between Bitcoin and the growth of the money supply, especially M2, which tracks the supply of cash and readily available funds. Siegel said that the recent policy adjustments by the Federal Reserve have once again accelerated the money supply, thereby reigniting people's interest in Bitcoin. Furthermore, he discussed the impact of global developments on Bitcoin adoption. He pointed out that some emerging markets, particularly the BRICS countries, are integrating government-resource-supported Bitcoin mining businesses. Looking ahead, Siegel said that global debt concerns could further drive interest in Bitcoin. He stated that if major economies face credit rating downgrades, especially the US, this could become a catalyst for increased investment in Bitcoin as an alternative asset.