Just six months later, on June 24 of this year, VanEck reapplied for approval of a physically-backed Bitcoin ETF all over again. The SEC’s decision is currently pending.
Despite this support, the investment firm has made a bearish prediction for BTC into the first quarter of 2023. Matthew Sigel, head of digital asset research at VanEck, shared this assessment in a recent media .BTC Price Could Drop To $10,000
“Looking ahead, Bitcoin could test $10,000-$12,000 as Bitcoin miner bankruptcies increase due to the drop in Bitcoin value and increasing electricity costs,” VanEck predicts. The investment firm believes that many miners will be forced to restructure or merge in order to find capital during difficult times. As Siegel explained, the mining industry is in a tremendous stress situation.In recent months, BTC has traded like a risk asset, Siegel said. What is surprising to the company, however, is its sensitivity to higher interest rates.We have an index which tracks the publicly traded companies in this sector; the median market cap is now below $200 million, and every one of these companies is burning cash, trading well below book value.
Bitcoin Miner Capitulation In Full Swing
As NewsBTC reported, the second Bitcoin miner capitulation within one cycle has already started two weeks ago. Charles Edwards of Capriole Investments reported on November 28 that the hash ribbons had confirmed the start of the capitulation.
At press time, BTC was trading at $17,882, with today’s FOMC meeting starting at 14:30 ET very likely to have a significant impact on price action in the coming weeks.
