The jump in the price of Bitcoin is due to the increased chances of Republican representative Donald Trump to win the presidential seat, Bernstein has concluded, The Block writes.
Experts have drawn attention to the high correlation between the first cryptocurrency and the former head of the White House's likelihood of defeating his Democratic rival Kamala Harris.
According to Polymarket, the odds of such an outcome have jumped to 56.6%. The last time such a high figure was observed was in late July.
Despite both candidates declaring their support for digital assets, the stakes in the cryptocurrency market are higher amid Trump's success in the presidential race," the experts commented.
Analysts have indicated a 78% chance of Republicans winning the Senate and a 39% chance of them gaining a majority in both houses of Congress.
They see MicroStrategy shares as a leading indicator of a potential bullish breakout. Since the start of the year, the bitcoin company's shares have risen by 191%, while digital gold has risen by 55%.
The company's stock price peaked in March this year before a months-long correction phase. Unlike Bitcoin, the quotes have already broken out of the sideways trend and continue to accelerate, experts explained.
Earlier, Bernstein predicted that the price of digital gold would rise to $80,000-90,000 in the event of Trump's victory. The change of Joe Biden to Harris would lead to a rollback to $40,000, without changing the long-term positive outlook, the analysts added.
The company's stock price peaked in March this year before a months-long correction phase. Unlike Bitcoin, the quotes have already broken out of the sideways trend and continue to accelerate, experts explained.
Earlier, Bernstein predicted that the price of digital gold would rise to $80,000-90,000 in the event of Trump's victory. The change of Joe Biden to Harris would lead to a rollback to $40,000, without changing the long-term positive outlook, the analysts added.
Experts have drawn attention to the steepening of the US Treasury curve, which they believe is a sign of increased market volatility and demand for alternative assets such as Bitcoin.
Analysts also noted the potential for MicroStrategy to generate a new revenue stream in the form of cryptocurrency lending. To date, the company has acquired 252,220 BTC, including 7,420 BTC in September.
MicroStrategy could become a "bitcoin bank, with capital markets products including common, convertible, preferred stock and fixed income instruments."
Experts have drawn attention to the steepening of the US Treasury curve, which they believe is a sign of increased market volatility and demand for alternative assets such as Bitcoin.
Analysts also noted the potential for MicroStrategy to generate a new revenue stream in the form of cryptocurrency lending. To date, the company has acquired 252,220 BTC, including 7,420 BTC in September.
MicroStrategy could become a "bitcoin bank, with capital markets products including common, convertible, preferred stock and fixed income instruments."
According to Standard Chartered, the digital asset ecosystem is becoming increasingly integrated into TradFi.
Growing legitimacy, coupled with favorable political developments, could be a tailwind for Bitcoin in the coming months. In a Trump-losing scenario, âthe broader trend toward cryptocurrency adoption remains intact.â
Let us recall that BlackRock CEO Larry Fink expressed confidence in the growth of the value of digital gold.
#newscrypto #donaldtrump #BTC $BTC
