Bitcoin Nears $118K as VanEck Predicts More Upside Into 2026
Stocks and digital assets are currently reaching record levels, with the S&P 500 and gold both hitting all-time highs, and Bitcoin approaching $118,000. Despite this, Matthew Sigel, Head of Digital Assets Research and Portfolio Manager at VanEck, believes that there is still room for growth in the market.
In a recent discussion on the state of the crypto market and outlook for the remainder of 2025, Sigel noted that there is no sign of the euphoria typically seen at market peaks. He emphasized that the market still has potential for further gains.
One key measure that Sigel and his team monitor is the cost of leveraged positions in Bitcoin futures markets. Historically, high funding rates have indicated market tops, but currently, these levels remain moderate. Additionally, Sigel pointed out that unrealized profits on the Bitcoin blockchain are not at levels that typically precede a market downturn, suggesting that Bitcoin’s rally is not yet overextended.
Sigel also discussed the strong performance of Bitcoin miners in 2025, with many mining stocks experiencing significant gains. However, he cautioned that these sharp increases could leave miners vulnerable to a pullback, particularly given the overlap between AI-linked equities and major stock indices like the S&P and Nasdaq.
Looking ahead to the next three months, Sigel highlighted the importance of monitoring market sentiment within Bitcoin. He noted that market participants are not exhibiting extreme greed, and U.S. equities, especially large tech companies, continue to show strong fundamentals with high profit margins and robust balance sheets.
When asked about the possibility of the crypto rally peaking in 2025 or extending into 2026, Sigel pointed to the traditional four-year Bitcoin cycle as a relevant factor. He also acknowledged the impact of U.S. political dynamics, such as midterm elections and regulatory uncertainty, on investor confidence.
In conclusion, VanEck’s digital asset strategist remains optimistic about Bitcoin’s potential for further upside as long as key indicators remain stable. While certain sectors of the market, like miners and AI-linked equities, may be overheating, Bitcoin itself has not yet shown signs of reaching a peak. As the year progresses, Sigel maintains a constructive outlook for the market in the final months of 2025.
