Research firm Bernstein highlights the potential for a positive shift in crypto regulations if Donald Trump wins the 2024 U.S. presidential election. This report explores the implications for Bitcoin, crypto stocks, and the overall market sentiment.
Points
- Potential Trump victory could lead to favorable crypto regulations.
- Bitcoin price and crypto stocks expected to benefit.
- Analysts predict significant inflows from institutional investors.
- Joe Biden drops out, increasing Trump’s chances of victory.
Pro-Crypto Stance Expected with Trump Victory
Analysts at Bernstein suggest that the market has yet to fully price in the potential regulatory benefits for cryptocurrencies if Donald Trump wins the U.S. presidential election. Trump is perceived as more crypto-friendly compared to the current administration. Bitcoin’s price has already reacted positively to the improved odds of a Republican win, with BTC trading around $67,548, up approximately 8% over the past week.
Bitcoin ETF Momentum and Crypto Stocks
The analysts note that Bitcoin ETF momentum is back, with net inflows exceeding $2 billion in the last two weeks, bringing total assets under management to $60 billion. Crypto stocks have also outperformed, rising 22% last week. Companies like Marathon, Riot, and CleanSpark are expected to benefit significantly, driven by the underlying Bitcoin price and aggressive expansion plans.
Biden Drops Out, Harris Steps In
Joe Biden’s withdrawal from the presidential race and endorsement of Vice President Kamala Harris has shifted the political landscape. Harris’s current odds stand at 28%, while Trump’s have increased to 65% on the decentralized prediction platform Polymarket.
Long-Term Bitcoin Price Predictions
In June, Bernstein raised its long-term Bitcoin price targets to $200,000 by the end of 2025, $500,000 by the end of 2029, and $1 million by 2033. These projections are based on the anticipated positive regulatory environment under a potential Trump presidency.
Conclusion
A Trump victory in the 2024 U.S. presidential election could lead to a favorable regulatory shift for cryptocurrencies, significantly benefiting Bitcoin and crypto stocks. Investors should consider the potential for substantial gains in this scenario.