VanEck CEO Sets Bitcoin Price Target at $150,000 to $180,000
In an interview with Mario Nawfal, Jan van Eck, CEO of VanEck, a $118 billion global asset manager, analyzed Bitcoin's potential trajectory, the US fiscal deficit, and financial markets. He provided a conservative price target for Bitcoin, stating, "Our thesis is effectively that Bitcoin will keep to the halving cycle, so we’re looking at sort of $150,000 to $180,000 this cycle as a price target." He dismissed forecasts of Bitcoin reaching $400,000 in the current cycle, suggesting it may occur in the next cycle.
Van Eck identified the US fiscal deficit as "the elephant in the room," expressing concerns over unsustainable spending. He outlined two perspectives in Washington regarding fiscal policy: the lobbyist view, which claims significant spending cuts are impossible, and the "extreme disruptors" advocating for a $500 billion cut in government spending. He credited this figure to Vivek Ramaswamy, co-head of the Department of Government Efficiency (DOGE), noting that 1,200 programs still incur spending despite being unauthorized, allowing termination through executive order. This target is described as "healthy" and "realistic," though it would not eliminate the entire deficit, which was $1.8 trillion last year.
Regarding President Trump's election, van Eck expressed surprise at the uncertainty surrounding fiscal policy despite a clear electoral outcome. He noted that initial market reactions were negative for gold due to restructuring possibilities, stating, "Never bet against Elon, right?"
Van Eck commented on geopolitical tensions, particularly relating to Ukraine, cautioning that such events are unpredictable and can significantly impact markets. He advised professional investors often choose to "do absolutely nothing" amid geopolitical uncertainties.
Catalysts For Bitcoin Price
On institutional interest in Bitcoin and regulatory changes, van Eck emphasized the regulatory environment's importance. He noted that while Asian regions have seen positive regulatory developments, the US has been quieter, although interest has recently increased. "Now, with the new regime, suddenly the phone is ringing," he stated.
Van Eck shared his personal investment stance, indicating a substantial investment in Bitcoin and gold. He expressed optimism about Bitcoin's maturation process, likening it to a teenager growing up, with new investor sets contributing to its development. While individual investors have embraced Bitcoin ETFs, the wealth management sector has yet to engage fully.
Addressing Bitcoin's correlation with traditional markets like the NASDAQ, van Eck expressed concern over its high correlation making Bitcoin less attractive to professional investors exposed to mega-cap tech stocks. He remains hopeful that Bitcoin's correlation will diminish back to zero, which it has historically maintained.
At press time, BTC traded at $95,350.
