VanEck Sees Bitcoin Reaching $500,000 As Gold Benchmark Supports Long-Term Upside Case

• VanEck's Matthew Sigel said the Bitcoin-to-gold ratio leaves room for Bitcoin to double against the metal.

• He said quantum computing is not a reason to sell Bitcoin.

• VanEck's medium-term target is half of gold's market capitalization.

Bitcoin (BTC) could potentially double against gold, with VanEck using half of gold's long-term market capitalization as the "north star" that would equate to a $500,000 price target for BTC, said Matthew Sigel, the firm's Head of Blockchain Research.

In a Bitcoin Magazine interview published Saturday, Sigel said Bitcoin was in the early stages of a recovery. He described the latest rally as a "short covering, sellers exhaustion rally" and said it was backed by "real money" through exchange-traded fund (ETF) flows.

See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox

Sigel said Bitcoin's correlation with gold is now at a multi-year high, meaning the two have been moving together more closely than they have in years. He pointed to the Bitcoin-to-gold ratio, which measures how many ounces of gold one Bitcoin can buy.

Gold Benchmark Supports Long-Term Upside Case

Sigel explained how it fell to about 16 or 17 over the summer, near multi-year lows, while its prior peak was around 40. "You could theoretically double Bitcoin versus gold," Sigel said.