Bitcoin Could Retest $126K Highs Within A Year Despite Nasdaq Correlation Risk: VanEck’s Sigel

• Despite recent volatility, investor interest remains strong and Bitcoin is likely to revisit its all-time high of $126,000 in the next 12 months, believes Matthew Sigel of VanEck.
• Sigel said spot Bitcoin exchange-traded funds drew roughly $2 billion in inflows last month, while Ethereum exchange-traded funds ended a 6-month outflow streak.
• He cited a recent move by the central bank to hold bitcoin as part of its foreign currency reserves as “a sea change” for the asset’s status in global financial markets.

Matthew Sigel, the Head of Digital Assets Research at VanEck, said on Friday that Bitcoin (BTC) remained highly correlated to the Nasdaq (NDAQ) and was likely to revisit its all-time high within the next 12 months due to continued investor demand.

Speaking in a CNBC interview, Sigel said investor surveys continued showing strong interest in Bitcoin despite recent market volatility, adding that the cryptocurrency was “likely to reach its all-time high again” within the next year.

The comments came as Bitcoin continued trading below its previous peak of $126,000, reached in October last year.

Sigel said Bitcoin remained “very highly correlated to the Nasdaq,” adding that the correlation with stocks was currently near a “five-year high.” At the same time, he cautioned that if broader equity markets weakened and those correlations continued holding, Bitcoin could still face sharp pullbacks. “A 10% correction in Bitcoin is no big thing,” Sigel said, while noting that VanEck remained constructive on the asset over the medium term.

Sigel also pointed to growing institutional adoption trends, including a central bank that recently announced plans to add Bitcoin to its foreign exchange reserves, calling it “a sea change” for Bitcoin’s role in global financial markets.

Bitcoin’s price was up by 0.8% during the past 24 hours, trading at $80,357. On Stocktwits, the retail sentiment around BTC remained in the ‘bullish’ zone, while chatter around it moved to ‘normal’ from ‘high’ levels over the past day.

XRP And Blockchain Adoption

Gilbertie pointed to XRP and the XRP Ledger as examples of blockchain networks with a specific use case tied to international value transfers. “The XRP ledger has a use case,” Gilbertie said, adding that Ripple’s long-term focus had been centered around moving value and money across borders through blockchain infrastructure.

He said the broader blockchain ecosystem was still in its early stages of development, comparing the current environment to the internet during the 1990s. Gilbertie also dismissed comparisons between the current blockchain market and a speculative bubble, saying the industry was “not even close” to that stage yet. 

XRP’s price was trading at $1.42, up over 1% in the last 24 hours. On Stocktwits, retail sentiment around XRP remained in the ‘bearish’ zone, while chatter stayed at ‘normal’ levels over the past day. 

Cautious Stance On Altcoins

Citing investor protection concerns, VanEck was “underweight” on cryptocurrencies, including Ethereum (ETH) and Solana (SOL), Sigel noted.

"One reason why our on-chain economy ETF is up 75% since inception, while Bitcoin is down 20%, is that we focused on the companies that can actually earn cash flow from the adoption of blockchain technology," Sigel said. He added that the listed blockchain infrastructure equities had recently outperformed several major altcoins.

Ethereum’s price was up over 1% during the past 24 hours. On Stocktwits, the retail sentiment around ETH moved from ‘bearish’ to ‘neutral’ zone, while chatter around it stayed ‘normal’ over the past day. 

Similarly, Solana’s price rose over 5% in the past day. On Stocktwits, the retail sentiment around SOL moved to ‘bullish’ from ‘neutral’ zone, while chatter around it moved to ‘high’ from ‘normal’ over the past day. 

Read also: Galaxy Research Head Says ‘Banks Are Wrong’ About GENIUS Act— Stablecoins Will Boost US Credit, Not Drain It

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