Bernstein Claims Cryptocurrency Market Isn’t “Pricing In” Donald Trump, Reveals Details

The article discusses Bernstein’s analysis that the cryptocurrency market has not fully accounted for the potential impact of Donald Trump’s policies on crypto regulations, and the implications for the market.

Points

• Bernstein analysts suggest the market has not priced in Trump’s potential impact on crypto regulations.
• Bitcoin price responds positively to Trump’s pro-crypto stance.
• Significant net inflows into Bitcoin ETFs and crypto stocks.
• Potential implications for major bitcoin mining companies and the broader crypto market.

Analysts at research and brokerage firm Bernstein argue that the cryptocurrency market has not fully considered the possible positive changes in crypto regulations if Donald Trump wins the upcoming US presidential election. In a note to clients, analysts Gautam Chhugani and Mahika Sapra highlighted that Bitcoin’s price is reacting favorably to Trump’s perceived improved chances, driven by his pro-crypto stance.

According to Bernstein, net inflows into Bitcoin ETFs have exceeded $2 billion in the past two weeks, bringing total inflows to over $17 billion since their launch in January. This surge in ETF momentum has pushed total assets under management to $60 billion. Additionally, crypto stocks have performed impressively, rising 22% last week.

Analysts expect major bitcoin mining companies like Marathon, Riot, and CleanSpark to outperform due to the underlying BTC price and potential cash flows from aggressive operational expansion plans. The anticipation of favorable regulatory changes under a Trump administration could further boost the performance of these companies and the broader crypto market.

解説

• Bernstein’s analysis highlights the potential impact of political developments on the cryptocurrency market, particularly regarding regulatory changes.
• The positive response of Bitcoin’s price to Trump’s pro-crypto stance underscores the significance of regulatory attitudes on market sentiment.
• Significant net inflows into Bitcoin ETFs and the strong performance of crypto stocks reflect investor optimism about potential regulatory shifts.
• Major bitcoin mining companies stand to benefit from favorable regulatory changes, emphasizing the interconnectedness of political events and market performance.
• Investors should closely monitor political developments and their potential implications for the cryptocurrency market, considering both opportunities and risks.