During a Thursday appearance on CNBC's "Squawk Box," Matthew Sigel, head of digital asset research at VanEck, stated that the ongoing cryptocurrency rally was just "getting started."
"We think that it's just getting started…We are now in blue sky territory. No technical resistance," Sigel said.
The analyst expects Bitcoin to log "repeated" all-time highs during the next two quarters.
Sigel noted that the same exact pattern had played out four years ago. After breaking above the all-time high of the previous cycle on Dec. 16, 2020, Bitcoin ended up more than doubling in price in less than a month. On Jan. 7, 2021, the cryptocurrency surpassed the $40,000 level for the first time. The cryptocurrency then surged to nearly $60,000 in February 2021 after Tesla made an investment into the cryptocurrency.
Alex DovbnyaBitcoin is currently up roughly 30% in November after adding roughly 11% in October and 7.25% in September. On Nov. 13, it reached another record high of $93,477, according to CoinGecko data.
Sigel has cautioned market participants that Bitcoin was not going to go up in a straight line, meaning that price corrections are likely. However, as of now, major indicators are still flashing green. During the previous cycle, there were about six 10% corrections, according to Sigel.
He has added that VanEck is currently getting a lot of calls from investment advisors who want to gain exposure to Bitcoin. "These calls are starting to accelerate, and we think the flows are gonna follow," he added.
VanEck believes that the leading cryptocurrency could potentially reach $180,000 during this cycle. This would still be the smallest Bitcoin cycle "by far."
Arman Shirinyan
Dan Burgin