VanEck sees Q1 risk-on sentiment but remains cautious on BTC

Global asset manager VanEck predicts a potential risk-on environment for assets in the first quarter of this year but maintains a cautious outlook for Bitcoin, citing the breakdown of its four-year cycle theory, Cointelegraph reported. In a report released on Jan. 13, VanEck stated that a positive investment environment has been created as U.S. fiscal and monetary policies have become clearer. However, the firm noted that the short-term forecast for BTC is complicated by several factors, including record-breaking forced liquidations in October of last year, a deteriorating correlation with stocks and gold, and the aforementioned cycle theory collapse. VanEck advised that a cautious approach is warranted for the next three to six months.