According to major investment manager Bernstein Research, Bitcoin may bottom out if Donald Trump loses the Presidential election in November. The latter released a new analysis of the political climate and its impact on the crypto market. The insightful prediction comes as the digital currency remains volatile and hesitant to move significantly.
In addition to the Bitcoin price index, Bernstein Research reported increasing activity of Bitcoin mining companies in the United States. They have been raising significant amounts of capital to boost BTC reserves, with Marathon Digital Holdings (MARA) raising $300 million and spending a large chunk of it on purchasing the digital currency. Riot platforms (RIOT) and Core Scientifica also made similar moves and raised more than $1 billion.
Image Source: Bernstein Research
However, many miners are pivoting to a “mullet strategy” in which they are dividing their computing resources between Bitcoin mining and AI processing.
Democratic Nominee Failing to Catch Up to Trump
The previous president has been openly courting the digital currency sector for the last couple of years. He has upped the ante in the buildup to the November election and is endorsed by top blockchain firms and proponents. He has promised self-custody for Bitcoin holders and less regulatory red tape for new crypto startups, and he wants the US to lead the global digital currency economy. He has also promised tax breaks for Bitcoin mining companies and pandered to them during recent blockchain conferences.
Trump’s latest overture to the digital asset market is in sharp contrast to his opponents from the Democratic Party, who, despite being shown proof after proof that crypto users are now in the tens of millions, have been slow to react to this major demographic shift. New Democratic nominee Vice President Kamala Harris has tried to shift her position on the matter but is slow to change the tough regulator image she has built up over the years. She is also unclear in her policy proposals regarding Bitcoin, and commentators believe this could be a major factor in courting the considerable crypto demographic in the country.
What Will Happen to Bitcoin After the 2024 Presidential Election?
According to Bernstein Research, the aftermath of the 2024 presidential election depends on Trump reclaiming the American presidency.
It stated:
“We believe the Bitcoin price would bottom, only if the crypto market catches a bid on a likely Trump win, given [the] crypto market continuing to interpret only a Republican win as positive for crypto policy,”
However, due to systemic problems within the American financial system, the digital currency is expected to have a significant impact in 2025 regardless of who takes office. High interest rates and the reckless printing of dollars are major causes of concern for the economy, and Bitcoin could effectively fill the gaps. Trump can positively impact the BTC price index, but only up to a certain degree.
