Following Donald Trump’s victory in the 2024 U.S. presidential election, investment firm Bernstein has called on investors to jump into Bitcoin’s booming market. In a bullish note to clients, Gautam Chhugani, Bernstein’s crypto research lead, noted the momentum, advising clients to buy crypto and related assets.
“Welcome to the crypto bull market—buy everything you can,” Chhugani said. This audacious suggestion comes at a time when Bitcoin is trading at around $86,000 following interest from institutions and awareness of crypto assets as a hedge against inflation.
Bernstein ($800 billion AUM) just put out their Monday morning note to clients:“Welcome to the Crypto bull market. Buy everything you can. Don’t fight this – add crypto exposure asap.”Stage 3 really is upon us. pic.twitter.com/ZGLoLvtXJD
— Yano 🟪 (@JasonYanowitz) November 11, 2024
Bitcoin’s appeal as “digital gold”
In view of the increasing global inflation, Bernstein considers Bitcoin as a much better option than conventional investments, describing it as “digital gold.” According to the firm, increased demand will be propelled by the limited supply of Bitcoin due to the halving cycles, which reduce the rate of issuance.
With the recent halving, the daily supply was reduced from 900 BTC to 450 BTC, a situation that has in the past led to a significant post-halving price rise. Chhugani and his team explained the different means that investors can use to access the growing crypto market.
Some examples of exposure are the Bitcoin and Ethereum exchange-traded funds, publicly listed bitcoin miners like Riot and Core Scientific, and exchanges like Robinhood and Coinbase. Other avenues of investment that were also mentioned include MicroStrategy, which has incorporated bitcoin as part of its corporate treasuries.
For direct crypto buyers, Bernstein recommended a basket of coins, which includes BTC, ETH, SOL, OP, ARB, POL, UNI, AAVE, and LINK. The firm suggests that cautious investors should “invert their mental models” and accept the upward trend of Bitcoin prices. The report states that Trump is the first openly pro-crypto president-elect, which provides institutional support that has attracted both old and new investors.
Bernstein’s price forecasts
According to Bernstein’s analysts, Bitcoin is expected to gain more momentum, saying that it may hit $200,000 by 2025, which they reckon is quite a low estimate given the rising use and limited supply of Bitcoin.
According to Bernstein, ETFs could hold between $60 billion and $190 billion in the next 10 years. However, in the longer-term, Bernstein has predicted that the price of Bitcoin could reach $1 million by 2033.
While Bitcoin’s price grows, the activity in the futures market is at an all-time high. The open interest in Bitcoin futures, a measure of the total value of outstanding contracts, has hit a record $51.3bn as of November 11. Over the past 24 hours, the liquidations in the futures market reached $165 million, and the majority of these closures belonged to short sellers who expected the Bitcoin price to decrease.
