Bitcoin’s price and the likelihood of a strategic Bitcoin reserve seem to be moving together, according to Matthew Sigel, Head of Digital Assets Research at VanEck. Each time Bitcoin sees a price spike, the odds of a Bitcoin reserve being established also rise. Experts in the crypto space believe that if a reserve is announced, Bitcoin’s price will likely surge; if not, it could drop.
In an interview with Scott Melker, Sigel opened up and he believes that the new administration in the U.S. could be a game changer for Bitcoin. With expected headlines around easing regulations and supporting deregulated energy markets, the stage is set for Bitcoin adoption to take off.
However, the altcoin market has faced recent struggles. Last Friday, altcoins experienced a 35% correction—the largest dip since the 2020 elections. This sharp drop signals that a lot of speculative money has been wiped out, but it may set the stage for Bitcoin’s rise as negative sentiment wanes.
Sigel also pointed to significant token unlocks this week, which have caused some jitters in the market. With $3 billion worth of altcoins unlocking, some traders expect these tokens to be sold off, putting downward pressure on prices. Despite this, Sigel remains positive for the long-term, believing that these market fluctuations are just part of the cycle.
Finally, there’s growing support at the state level for Bitcoin reserves. Oklahoma, for example, recently introduced a bill to create its own Bitcoin reserve. This shift could further fuel Bitcoin’s growth, regardless of what happens at the federal level.
As Bitcoin moves forward, experts believe positive changes are on the horizon, with the new administration’s actions likely providing the momentum needed for a bullish 2025. At the time of writing Bitcoin is trading at $102k levels and is up by more than three percent in the last 24 hours.
