TL;DR
- VanEck has increased its investment in Bitcoin (BTC) amid forced sales that have pressured the cryptocurrency’s price down.
- Sales by governments and asset liquidations from Mt. Gox and Genesis have contributed to recent market volatility for BTC.
- The firm anticipates a Bitcoin recovery with the decline in forced sales and a more favorable economic environment.
VanEck, the financial firm, has intensified its interest in Bitcoin (BTC) in a scenario marked by forced sales that have pressured the cryptocurrency’s price downward. According to Matthew Sigel, head of digital assets research at VanEck, the company has been acquiring BTC amid a series of events that have contributed to recent market volatility.
Sigel notes that several factors have contributed to Bitcoin’s price decline in recent months. Among these are sales by the governments of Germany and the United States, who liquidated large amounts of BTC. Germany, in particular, sold 49,858 BTC in July, amounting to approximately $2.6 billion.
Additionally, the U.S. government has been selling confiscated assets related to the Silk Road case. This is compounded by the liquidations by creditors from the bankruptcies of Mt. Gox and Genesis, who have started receiving payments, which has contributed to increasing downward pressure in the market.
The Market Is on the Path to Recovery, According to VanEck
However, Sigel argues that these sales represent a typical seasonal pattern in the Bitcoin market, especially in the months following a halving event, which reduces the mining reward by half. Historically, BTC has faced periods of high volatility in the three months following each halving, but Sigel and his team at VanEck believe that, with most of the forced sales already completed, the stage is set for a recovery.
The market could benefit from a rise in global liquidity, which could drive BTC prices to new highs. The global financial environment is expected to become more favorable for digital assets as macroeconomic policies continue to support liquidity.
Additionally, the proximity of the U.S. presidential elections could play a crucial role in this dynamic. With the expectation that fiscal and monetary policies will remain expansive regardless of the electoral outcome.
VanEck sees the current Bitcoin retracement as an opportunity to acquire more of the asset. With the hope that the cryptocurrency will regain momentum and reach new price levels in the near future. Supported by a more favorable economic environment and the reduction in forced sales.
