Analysts at broker Bernstein said in a research report on Monday that the crypto market has not priced in a potential bullish change in the crypto regulatory environment if former President Donald Trump wins back the White House in November.
The analysts are keenly monitoring key crypto stocks ahead of Trump’s upcoming appearance at the Nashville Bitcoin conference.
Trump 2.0 Presidency Not Priced In
Bernstein analysts shared their bullish outlook on the cryptocurrency market in a note to clients on July 22. Gautam Chhugani and Mahika Sapra noted that the price of Bitcoin reacts positively to perceived improvements in chances for Trump to retake the U.S. presidency, placing confidence in the Republican nominee’s pro-crypto outlook. “We see significant headroom from institutional investors allocating to crypto and crypto stocks,” they explained.
Bernstein researchers observe that the spot Bitcoin ETF momentum is back, with net inflows of over $2 billion in the last two weeks only, pushing the cumulative inflows to around $17 billion since their debut in January.
They anticipate prominent Bitcoin mining consolidators, including Marathon, Riot, and CleanSpark, to outshine, with their price action buoyed by the underlying BTC price and possible cash flows from their bold operational expansion strategies. Chhugani and Sapra posited that such firms often raise capital to expand their share in the mining market.
Additionally, the analysts consider MicroStrategy an active leveraged Bitcoin equity strategy, currently holding 1.1% of the world’s Bitcoin supply, which was acquired using equity and convertible debt. The Michael Saylor-founded software company is currently trading at a premium owing to its Bitcoin strategy, they observed. They project the company will hold Bitcoin worth as much as $41 billion by 2025-end, bolstering a target price of $2,890 for MicroStrategy stock.
Bitcoin’s Potential To Become A Global Reserve Asset
Bitcoin has jumped 7% over the last seven days, per CoinGecko data, currently changing hands for $67,854. The flagship crypto popped above the $68,000 mark on Monday morning for the first time in over a month. The rise came following President Joe Biden’s announcement that he had dropped his re-election bid, instead throwing his support behind Vice President Kamala Harris.
His Republican challenger, Trump, is scheduled to speak at the Nashville conference this Saturday, despite the recent horrific attempt on his life that boosted his odds of winning the Nov. 4 Presidential elections. Speculation is rife that the ex-POTUS might announce a plan to make Bitcoin a strategic reserve asset, which would supercharge the price of the OG crypto to new lifetime highs.
Meanwhile, the Bernstein team reiterated they expect Bitcoin to cross $150K in 2025 with a cycle peak at $200K “on the back of accelerated BTC institutional adoption, led by ETFs and corporate treasury investors.”
