VanEck’s Matthew Sigel Predicts $23 Billion Buying Pressure for Bitcoin as Multiple States Propose Strategic BTC Reserves

Matthew Sigel, the Head of Digital Asset Research at VanEck, has projected that recent proposals aimed at establishing bitcoin strategic reserves in various U.S. states could lead to considerable asset acquisition, totaling around 249,500 btc. If these initiatives are implemented, they could create a formidable buying pressure estimated at approximately $22 billion, offering a significant alteration to how state-level finances might be managed.

Sigel elaborated on this potential shift in a recent commentary shared on social media platform X, highlighting that 20 states have currently proposed bills for Bitcoin strategic reserves. Should these proposals come to fruition, they would enable state governments to commit extensive resources towards the acquisition of Bitcoin. “This estimate does not account for pension fund allocations,” Sigel noted, which implies that, should additional states pursue similar reserve strategies, overall buying pressure could further amplify. His analysis emphasizes that the growing interest from state governments in Bitcoin will have a substantial impact on market liquidity and price dynamics.

A notable example is North Carolina, where House Bill 92 was recently introduced. This legislation permits the state to invest up to 10% of certain funds into Bitcoin and other cryptocurrencies, stipulating that any digital asset in the reserve must possess a minimum market capitalization of $760 billion. This provision ensures that Bitcoin remains the primary asset considered for state reserves. State Representative Mark Brody articulated the rationale behind this move, asserting that incorporating Bitcoin could act as a safeguard against inflationary pressures. “As inflation and devaluation risks affect the U.S. dollar, it becomes sensible to consider this new class of assets,” Brody emphasized.

In a parallel development, New Mexico has also indicated a shift towards Bitcoin reserves. Recently, Senator Anthony Thornton proposed the “Strategic Bitcoin Reserve Act,” which could authorize the state to allocate up to $2.1 billion for Bitcoin investments. This growing momentum among states points towards a broader acceptance of Bitcoin as a legitimate component of state financial strategies.

Simultaneously, discussions at the federal level have commenced regarding the potential creation of a national cryptocurrency stockpile under the Trump administration. In recent weeks, an executive order was issued to form a working group dedicated to evaluating the feasibility of maintaining a federal reserve of digital assets, including Bitcoin. Although specific structural details regarding a national reserve remain undisclosed, the burgeoning enthusiasm demonstrated by states signifies an increasing regard for Bitcoin as a viable long-term investment option for public funds.

Furthermore, an initiative by Donald Trump’s family project has launched a Macro Strategy reserve, aimed at bolstering its engagement in the cryptocurrency landscape. This combination of state and federal interest in Bitcoin reflects a shifting perspective towards embracing digital currencies as part of modern financial strategies.

Despite the promising outlook and growing interest surrounding Bitcoin, market analysts caution that managing a reserve of such assets mandates specialized knowledge and infrastructure, with concerns being raised about governmental expertise in adeptly handling digital currencies.

At the same time, experts have turned their focus to Bitcoin’s historical price movements, noting that previous market peaks have emerged roughly every four years. The last three notable highs occurred in November 2021, December 2017, and November 2013. If this cycle holds true, analysts anticipate the next peak may manifest between November and December 2025. Several experts leverage the power law model, asserting that Bitcoin adheres to a long-term exponential growth trajectory.

According to this paradigm, anticipated price peaks in the upcoming cycle could soar between $191,500 and $291,000. Analysts maintain that despite short-term volatility, Bitcoin’s price behaviors have generally adhered to expected market patterns.

As these developments unfold, the cryptocurrency landscape continues to evolve. The wave of state-level initiatives, paired with growing federal considerations, marks a pivotal moment in the broader acceptance of Bitcoin and digital assets. This evolution could further cement Bitcoin’s role in institutional finance and public investment strategies, underscoring its potential as both a store of value and a strategic asset against economic uncertainties. The future trajectory of Bitcoin’s price and adoption remains an active point of interest for investors and policymakers alike.