Asset manager VanEck has projected a cycle price target of $180,000 per Bitcoin as the next phase of the bull market gains momentum.
In his latest Bitcoin ChainCheck report, VanEck highlighted parallels between the current market and the post-election rally in 2020, citing increased regulatory sentiment under President-elect Donald Trump as a critical driver of Bitcoin’s upward trajectory.
VanEck noted that the Bitcoin price rose 9% on election night to reach an all-time high of $75,000. This increase was tied to Polymarket rates favoring Trump’s victory and marked the beginning of a high-volatility rally. The asset manager believes that the lack of technical price resistance positions Bitcoin for significant growth similar to the 2020-2021 cycle, when Bitcoin’s price more than doubled in the months following the US elections.
“Investor interest is accelerating as government support for Bitcoin undergoes a transformational shift. We are seeing incoming calls at an accelerating pace as many investors find themselves under-allocated to this asset class,” VanEck said, reiterating his $180,000 price target.
VanEck noted that Trump’s pro-crypto platform is a turning point in US regulatory policy, and the supportive measures are expected to spur growth in the cryptocurrency sector. Key developments expected under Trump’s administration include:
- FIT21 Revision: The controversial crypto legislation is expected to be revised to include market and privacy-friendly terms.
- Stablecoin Reform: A new draft would allow state-affiliated banks to issue stablecoins without Fed approval, facilitating wider global adoption of US dollar-pegged assets.
- End SEC Regulation with Enforcement: Trump has vowed to replace SEC Chairman Gary Gensler and appoint crypto-friendly regulators. This move is expected to spur initiatives such as crypto custody solutions by banks and approval of Ethereum (ETH) and Solana (SOL) ETFs.
VanEck said regulatory clarity and energy deregulation could bolster U.S. leadership in Bitcoin mining, AI, and clean energy. “Trump acknowledged the shared energy-intensive nature of Bitcoin mining and AI and signaled potential energy deregulation to support these industries,” the report said.
VanEck also touched on the geopolitical dimension of Bitcoin and stablecoins, particularly their potential to strengthen the global influence of the US dollar. With countries like the BRICS exploring Bitcoin as a tool to bypass US sanctions, VanEck argues that easing stablecoin regulations could allow the US to benefit from the rapid adoption of crypto in emerging markets where demand for financial services and decentralized finance (DeFi) is increasing.
Bitcoin dominance, a measure of Bitcoin’s market cap relative to the entire cryptocurrency market, has surged to 59%, the highest level since March 2021. With dominance expected to peak soon, VanEck predicts that Trump’s pro-crypto stance will attract institutional capital across the entire crypto ecosystem, triggering growth in DeFi and altcoins.
*This is not investment advice.