- VanEck’s latest report highlighted that Bitcoin is not yet in a bear cycle, because it is only undergoing a “mid-cycle reset.”
- The investment manager cited technical trends, strong fundamentals, and rising adoption reinforcing BTC’s momentum buildup.
- Meanwhile, Standard Chartered’s take suggests BTC could rally to $200K this year.
Bitcoin (BTC) has been mostly cruising across the $110K line this week after failing to break above $116K following the largest crypto market liquidation roughly two weeks ago. As of Thursday, the premier crypto asset continues to tread across the “Fear” territory in the Crypto Fear & Greed Index, indicating a cautious investor sentiment around it.
The US-China trade tensions and bearish narratives mainly influence the current state of the market, causing division in the crypto community. Despite some analysts claiming an ongoing capital rotation from gold to Bitcoin, veteran trader Peter Schiff firmly said there’s no such thing. In fact, he believes investors are having a mass exodus out of BTC, suggesting a bear market for the asset.
However, global investment management firm VanEck dispelled the FUD (Fear, Uncertainty, Doubt) surrounding Bitcoin’s present struggles.
VanEck Believes Bitcoin is Taking a Mid-Cycle Reset
VanEck argued in its latest report that the current trend indicates Bitcoin is not yet in a bear market. The October corrections are only part of its “mid-cycle reset” or “mid-cycle sell-off” as its fundamentals remain solid.
The global investment management firm explained that leverage has gradually normalized. Futures open interest, which peaked at $52 billion before a series of liquidations washed around 18% of its value in early October, has now normalized at the 61st percentile. The prices are also near one-year lows relative to gold, reinforcing its thesis that BTC is still in its bull cycle.
Additionally, VanEck emphasized the strong correlation between US M2 supply (money supply flowing across the economy) and Bitcoin. The non-stop money printers of the Federal Reserve continually pump liquidity into the economy, creating a macro backdrop highly favorable for the premier digital asset.
Moreover, the company is confident that the maturing market reinforces Bitcoin’s upside momentum buildup. The solid revenue-to-price correlations among Layer-1 (L1) chains and the various institutions’ growing accumulation of BTC to boost their treasury undercores the asset’s rising importance in financial portfolios.
Standard Chartered Sees BTC Soaring to $200K
Standard Chartered Head of Digital Asset Research Geoffrey Kendrick shared VanEck’s positive outlook for Bitcoin. According to Bitget, the official from the international banking group claimed BTC had the potential to go beyond $126K, if only it weren’t interrupted by the escalation of the US-China trade war.
Interestingly, Kendrick boldly predicted that Bitcoin could reach up to $200K this year. However, the road there could be bumpy as it may face one last dip below $100K before skyrocketing.
Furthermore, the expert laid out factors that could sustain Bitcoin’s rally to the said target. These consist of fund rotation from gold to BTC and interest rate cuts from the Fed.
