Brokerage firm Bernstein has branded Bitcoin to be the “new Trump trade.”
Background
- Bernstein highlighted that Trump has been quite vocal about making America the "Bitcoin and crypto capital of the world"
- In fact, he has mentioned digital assets in almost every policy speech he has made
- While chalking out his seven-pillar economic plan last week, Trump affirmed that he will embrace the industries of the future, instead of attacking them
- Meanwhile, Harris has not mentioned crypto even once in any of her speeches
Details
- Analysts at Bernstein expect the asset to attain new highs this year if Donald Trump wins the upcoming elections in November
- According to analysts led by led by Gautam Chhugani, BTC could hit $90,000 by Q4
- However, the asset’s price is expected to go downhill if Harris wins
- Post breaking its current $50k floor, BTC could test the $30k-$40k range
Why should you pay attention?
- BTC has been consistently yielding negative returns during the US trading hours
- With elections approaching — and a debate scheduled for today — market participants can expect volatility to notch up
- If bids start piling up over the next few weeks leading to the election then Bernstein’s $90k prediction could materialize, potentially pushing the ROI during US trading hours back to the positive territory
- However, if Harris manages to gain an edge then the negative return streak will likely prolong
Who said what?
The Bernstein analysts highlighted,
"After the last three years of regulatory purge, a positive crypto regulatory policy can spur innovation again and bring the users back to financial products on the blockchain."
They added,
"Elections remain hard to call, but if you are long crypto here, you are likely taking a Trump trade.”
Zooming out
- Bettors on Polymarker feel there’s a 74% chance of Harris winning the debate tonight
- However, Trump continues to maintain a decent lead in the ultimate election victory forecast
