Why are the younger generations rushing into the Crypto industry at an accelerated pace?

Source: Blockchain Knights

Matthew Sigel, head of digital asset research at VanEck, said that BTC adoption is following a similar pattern to the video game industry.

That is, younger investors are increasingly embracing Crypto assets while older generations of investors are gradually exiting.

On October 28, Sigel said on CNBC’s “Squawk Box”: “Just as new gamers are born every day, new BTC buyers are also emerging, which makes BTC ‘very bullish’.”

Sigel further elaborated on his point via social media and compared BTC adoption to gaming behavior.

“The interesting thing about gamers is that they don’t stop playing when they are in their 50s, and they certainly don’t stop investing.”

Sigel explained: “This metaphor is often used for gaming stocks, and now it is also used for BTC to illustrate the continuous influx of young investors willing to enter the market.”

Sigel also pointed out that the US presidential election could be a key trigger for the next major fluctuation in BTC’s value.

When asked by Squawk Box host Joe Kernen about the correlation between BTC and risk assets, Sigel explained with these words that BTC is in a “very bullish setup” as the U.S. presidential election approaches.

As a result, Sigle said that BTC’s correlation will change over time, citing the growing correlation between the Nasdaq and BTC over the past 10 years:

“Over a 10-year time span, the Nasdaq’s correlation with BTC is 0.19, which is quite low. Over the past three months, the correlation has been 0.5, which is a two-and-a-half-year high, which may keep some allocators on the sidelines as they want to see BTC fall.”

Sigle believes that this rise in correlation is a potential precursor to a bullish rally for BTC, similar to the pattern observed when BTC experienced wild volatility following the results of the 2020 U.S. presidential election.

And, the upcoming election results could once again attract new buyers to the Crypto asset market, sparking a sharp rally.

Sigel also said: "I believe Moody's may downgrade the US sovereign debt rating after the election, which may further promote investors to use BTC as an alternative value storage tool."

"The combination of increased correlation, election results and potential debt downgrades creates conditions for increased adoption and investment in BTC."