As a seasoned researcher with over two decades of experience in financial markets, I must admit that the current bullish sentiment towards Bitcoin and the broader crypto sector is unlike anything I’ve witnessed before. The rapid rise of Bitcoin following Donald Trump’s election victory has caught my attention, and it seems the analysts at Bernstein share my intrigue.
After Donald Trump’s win in the election, Bitcoin reached a record peak of more than $85,000, causing analysts at Bernstein to make a very optimistic prediction about the future of cryptocurrencies.
The research group headed by Gautam Chhugani advised investors to consider investing in cryptocurrency at their earliest convenience, highlighting the imminent arrival of a favorable regulatory landscape for digital currencies.
In a fiery message sent out to clients on Monday, Chhugani advised against resistance: “Embrace the crypto market’s upswing – invest in as much as you can.
As a researcher, I would advise those investors who have been cautious due to regulatory uncertainties to reconsider their perspective, especially in the context of President Trump’s election and the expected policy changes. A crucial first step could be the appointment of a pro-cryptocurrency chairman at the SEC, which might pave the way for more favorable regulations in this sector.
A New Era of Crypto Policy
Initially hesitant towards cryptocurrency, Trump shifted his stance during his campaign, advocating for a national Bitcoin reserve and vowing to halt the struggle against crypto regulations. Although the creation of this reserve would need legislative consent and might not be realized until 2025, analysts at Bernstein perceive an undeniable trajectory: “It seems clear to us that Bitcoin is moving towards becoming a financial asset owned by corporations, governments, and institutions,” they stated.
Enhancing the positive sentiment, Trump’s transition team includes prominent crypto advocates like VP-elect JD Vance, RFK Jr., and Vivek Ramaswamy – all of whom have publicly declared their ownership of Bitcoin. High-profile tech investors such as a16z and David Sacks add weight to the pro-cryptocurrency argument. As per Chhugani’s report, the crypto sector invested approximately $130 million during the election period to back candidates with favorable views. Additionally, recent weeks have seen inflows of $4.7 billion into Bitcoin exchange-traded funds (ETFs).
Bitcoin Looks Set For Huge Week
Bitcoin kicked off the week robustly, surging close to $85,400 on Monday, representing a near $20,000 increase over the past seven days, showing no indications of abating.
On Monday, BlackRock’s $IBIT Bitcoin ETF recorded a trading volume of $1 billion within the first 35 minutes. This surpassed the volume it achieved in just 20 minutes the day after the election, indicating slightly lower but still significant activity. According to ETF analyst Eric Balchunas, this suggests strong inflows are expected for the remainder of the week.
In the world, only ten assets have reached a value of one trillion dollars, and among them, Bitcoin has been the swiftest to achieve this milestone. Therefore, when it comes to investing, often the wisest choice is to hop on board with the fastest-moving option.
Expanding Crypto Exposure
Bernstein provided multiple strategies for investing in cryptocurrencies, suggesting that institutional investors should explore these possibilities:
- Spot Bitcoin and Ethereum ETFs
- Public Bitcoin miners like Riot Platforms and Core Scientific
- AI-integrated miners such as Iris Energy (IREN) and CleanSpark
- Companies with Bitcoin corporate treasuries, notably MicroStrategy
- Crypto exchanges, including Robinhood and Coinbase
For those able to directly purchase cryptocurrencies, Bernstein recommended a diversified basket including BTC, ETH, SOL, OP, ARB, POL, UNI, AAVE, and LINK.
Bullish Predictions: $200K Bitcoin by 2025
Despite Bitcoin currently trading at $85,000 and having already increased by 97% this year, Chhugani’s team maintains their conviction in a $200,000 price prediction for Bitcoin by the end of 2025. They believe that the risk-reward remains advantageous over the next 12 months based on their analysis.
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2024-11-12 02:50