Bitcoin Adoption Rises as Younger Investors Drive Growth, Says VanEck’s Analyst

Bitcoin's adoption trajectory mirrors that of the gaming industry, with younger investors increasingly engaging with the cryptocurrency while older generations are gradually withdrawing, according to Matthew Sigel, head of digital assets research at VanEck.

In a recent appearance on CNBC’s “Squawk Box,” Sigel likened the constant influx of new Bitcoin buyers to the ever-expanding base of gamers, suggesting a “very bullish setup” for Bitcoin.

He emphasized that gaming behavior reflects a broader trend, noting that gamers do not typically stop participating in their 50s, drawing a parallel to continued investment in Bitcoin among younger demographics. Sigel highlighted that the upcoming U.S. presidential elections could serve as a catalyst for Bitcoin’s next significant price movement.

Elaborating on this point, he mentioned how Bitcoin’s correlation with traditional risk assets, such as the Nasdaq, has intensified in recent years. While the long-term correlation has been relatively low at 0.19, it recently surged to 0.5, indicating increasing interdependence. This heightened correlation may lead some investors to remain cautious as they await a potential downturn.

Sigel suggested that the resolution of the election could attract new buyers into the crypto space, reminiscent of the market’s behavior in 2020 post-election. He also speculated that a possible downgrade of U.S. sovereign debt by Moody’s Corporation after the elections could encourage further investment in Bitcoin as a viable alternative asset. This convergence of rising correlations, electoral outcomes, and potential debt downgrades positions Bitcoin for increased adoption and investment in the near future.