VanEck Sees $500,000 Bitcoin Price Target, Cites Gold Benchmark as North Star
VanEck's Head of Blockchain Research, Matthew Sigel, said Bitcoin is in the early stages of a recovery, citing a 'short covering, sellers exhaustion rally' backed by 'real money' through exchange-traded fund (ETF) flows.
According to Sigel, the Bitcoin-to-gold ratio, which measures how many ounces of gold one Bitcoin can buy, has been increasing and is now at a multi-year high. He pointed out that the ratio fell to about 16 or 17 over the summer, near multi-year lows, while its prior peak was around 40.
Sigel explained that using half of gold's market capitalization as the 'north star' for Bitcoin would put the price at about $500,000. He said this could happen this cycle or the next, and that Bitcoin could potentially double against gold.
Sigel also addressed the risks, noting that quantum computing is a risk, but not a reason to sell Bitcoin. He said the main bear case is that high Treasury yields could 'break something' in the market, but that this could actually lead to capital flowing back into Bitcoin.