Bernstein says a “Goldilocks scenario” is emerging for bitcoin miners amid the “Trump factor”
Analysts at research and brokerage firm Bernstein said a “Goldilocks scenario” is emerging for bitcoin miners amid the “Trump factor” after a failed assassination attempt against the former US president at a rally. in Pennsylvania on Saturday.
"The Goldilocks scenario for bitcoin mining is emerging: greater possibilities for pro-bitcoin political change, the US emerging as the dominant center for bitcoin mining and next-generation mining chips, miners being valued for their leadership in energy interconnection, and miners emerging as strong partners for AI data centers," Gautam Chhugani and Mahika Sapra wrote in a note to clients on Monday.
The price of bitcoin initially fell when the alleged assassin's bullet passed through Trump's right ear and the presumptive Republican presidential candidate fell to the ground. However, he came back strong when the former president stood up, raised his fist in the air and shouted "fight."
Bitcoin subsequently rose about 6%, from $59,250 to $63,000, in what some commentators have dubbed the “Trump inflation.”
The cryptocurrency market interprets a Trump victory as "more positive" for cryptocurrencies, given the Biden administration's regulatory crackdown on the industry compared to Trump's pro-Bitcoin statements in recent months, according to analysts including advocating for self-custody and Bitcoin mining.
“Bitcoin price is positively correlated with the likelihood of a Trump presidency and will remain sensitive to election updates,” the analysts said.
