A new report from Bernstein Research indicates that the cryptocurrency market, especially Bitcoin (BTC), could face significant volatility depending on the outcome of the upcoming US presidential election.
This analysis predicts that a potential Donald Trump victory could mark a turning point, as Bitcoin prices are likely to bottom out and then recover strongly, fueling growth in the leading cryptocurrency.
“We believe that Bitcoin prices will only bottom if the crypto market receives positive momentum from a possible Trump victory, as the market currently values a Republican victory as a positive signal for crypto policy,” the report stated.
This comment comes as cryptocurrency prices remain within a narrow range, which Bernstein attributes to uncertainty surrounding the US election.
According to new data from Polymarket, a leading crypto prediction platform, the race between Republican Donald Trump and presumptive Democratic challenger Kamala Harris is extremely tight. After a series of negative reactions to Harris’ economic statements, Trump’s odds have recovered significantly in recent days. However, Harris has regained the upper hand on Polymarket over the past 24 hours, with a 49% support rate compared to Trump’s 48%.
Source: Bernstein Research
In addition to the election analysis, the report also highlights notable fundraising activities by US-listed Bitcoin mining companies.
Marathon Digital Holdings (MARA) has raised $300 million through convertible bonds, part of which will be used to buy Bitcoin for the company’s balance sheet. Last week, the company confirmed the purchase of $249 million in BTC.
Meanwhile, Riot Platforms (RIOT) recently announced a $750 million equity offering, while Core Scientific (CORE) raised $400 million in convertible notes to restructure debt and expand its AI data center acquisitions. According to Bernstein’s Gautam Chhugani, U.S.-listed Bitcoin miners have a natural advantage in the industry.
“US-listed Bitcoin mining companies have a natural advantage over unlisted private companies,” he said. “Whether their goal is to continue mining Bitcoin or expand AI data centers, the ability to raise capital through debt or equity in the world’s largest capital market gives them a distinct competitive advantage over non-US companies, especially in a capital-intensive industry that is facing consolidation.”
The report also mentioned an emerging strategy, called the “mullet strategy,” in which miners are shifting to AI data centers while maintaining Bitcoin mining operations. This strategy is attracting attention from institutional investors, who are more familiar with the economic model of data centers than cryptocurrency mining.
Source: https://tapchibitcoin.io/bitcoin-price-can-slow-down-if-trump-rises-according-to-bernstein-research.html
