VanEck’s  Head of Digital Assets Predicts Bitcoin Surge as Forced Selling Ends and AI Trade Opportunities Emerge

• Bitcoin rises 3.30% as forced sell-offs by the U.S. and German governments and Mt. Gox creditors come to an end.
• VanEck signals Bitcoin recovery, highlighting a two-year high in Bitcoin’s correlation with the Nasdaq amid favorable fiscal policy.
• AI integration by miners like Core Scientific and Terawolf could drive future stock performance and reduce capital costs.

Bitcoin has recently rebounded, gaining momentum as the effects of forced selling diminish. Matthew Sigel, Head of Digital Assets at VanEck, shared insights on the factors influencing Bitcoin’s recent performance. 

According to Sigel, all the forced selling pressure from various entities has passed, allowing Bitcoin to regain strength and become more attractive to investors. Sigel’s perspective aligns with the growing optimism surrounding Bitcoin’s recovery.

Forced Selling Behind, Recovery Ahead

Sigel emphasized that the market has seen notable selling pressure from governments and major bankruptcies. The German government and the U.S. government’s liquidation of Silk Road-related coins have been notable contributors. 

Additionally, bankruptcies such as Mt. Gox and Genesis have led to creditor payouts, further impacting the market. However, with these events now behind, Bitcoin seems to be entering a phase where its typical seasonal patterns suggest growth. 

Sigel highlighted that Bitcoin often struggles in the months following a halving event, such as the one in April, but tends to recover strongly as fiscal policies evolve, especially leading up to elections.

Bitcoin’s Correlation with Nasdaq at Two-Year High

Another key factor Sigel pointed out is Bitcoin’s growing correlation with the Nasdaq. This correlation has reached a two-year high, although it remains below the peaks seen in late 2022. 

The interplay between Bitcoin and traditional markets suggests that Bitcoin’s performance is increasingly linked to broader economic trends. Sigel mentioned that as markets adjust to pre-election fiscal policies, Bitcoin historically finds its footing, setting the stage for potential recovery in the coming months.

Bitcoin Miners and AI Trade Opportunities

A related development in the Bitcoin market is the evolving role of Bitcoin miners, who are increasingly turning to AI-related deals. Sigel noted that Bitcoin miners, such as Core Scientific and Iris Energy, have been capitalizing on arbitrage opportunities. 

These companies are trading at substantially lower valuations than data center companies, presenting opportunities for growth. Recent AI deals, including BTBT’s $700 million deal, reflect this trend, offering potential benefits for miners and investors.

Bitcoin is currently trading at $60,637.40, up 3.30% in the last 24 hours, with a market cap of $1.2 trillion.