For analysts Bernstein, Trump will target interest from the crypto sector heading into this election, and will likely address these aspects of winning the presidency. This would have a positive impact on the price of Bitcoin and other altcoins.
***
- Analysts of Bernstein present some ideas about the Trump campaign and the crypto sector
- They anticipate that this will be one of his focuses, and probably one of the areas in which he will have an impact as president.
- Trump is capturing the support of the crypto sector with his pronouncements and promises
- It remains to be seen what impact it would have on the market if he wins the electoral contest.
- Crypto market is going through a short bearish period at the moment
The US-based investment and brokerage firm, Bernstein, considers that despite the bearish sentiment that is felt in the crypto market, if presidential candidate Donald Trump manages to take the lead in the race for the presidency of the United States, the main cryptocurrencies will probably benefit significantly at the price level.
Cryptos will be a focus for Trump
This is the thesis they support Gautam Chhugani and Mahika Sapra, analysts at Bernstein, who in a note published for the entity’s clients, cited by the media The Blockrecognize that cryptocurrencies could be “Trump’s main business”that is, the focus of his campaign and probably one of his areas of interest if he becomes president.
The reading is not unrelated to what Trump’s behavior has been towards the crypto sector in recent weeks, since on repeated occasions the former president and current Republican candidate has made quite encouraging remarks for the members of this community. He assures that if elected he will respect the rights of investors, he will advocate for the self-custody of Bitcoin and other digital currencies, will support crypto mining activities and work to ensure that the future of the sector is in the US.
On the other hand, Trump has also taken advantage of the actions promoted by President Joe Biden and his cabinet that have not been particularly good for the crypto sector. In fact, he indicated verbatim that if he won the presidency, he would end the war against cryptocurrencies promoted by the government through its policies and regulations.
These statements have led many to think that the crypto issue will be a central axis for the next elections to be held at the end of the year. The investor and enthusiast of digital currencies, Mark Cuban, anticipated that Trump could defeat the current president thanks to the community vote of digital currencies, even achieving the support of the Winklevoss brothers, who financed his campaign through donations with Bitcoin.
Bearish sentiment may be temporary
Although the idea of Trump as president generates good expectations for the crypto sector, analysts at Bernstein They highlight that the market is currently experiencing a bearish sentiment, which could only last in the short term.
Chhugani and Sapra maintain that the current state is due to the fact that the euphoria after the months in which ETFs gained importance has passed somewhat. Bitcoin cash. This is seen in recent fund outflows and the outlook for equity-based funds. Ethereum, which are expected to begin operations between September and October of this year.
About ETFs Bitcoin, Analysts anticipate:
There may be a temporary pause, before large private banking platforms whitelist Bitcoin ETFs. This is the true tipping point for portfolio allocations towards Bitcoin, beyond simple base trading. We expect these approvals to come in the third or fourth quarter and until then the markets will drag.
Regarding the Ethereum ETFs, although there are expectations about these funds, analysts highlight that they may not attract as much liquidity as their counterpart, in addition to the fact that said digital currency does not have such a clear narrative for the investor due to its more technological than financial emphasis. .
“Thus, Ethereum ETFs may be weak initially, but if election sentiment turns more Republican, cryptocurrencies would end up as Trump’s main ‘trade’ and hopes for a favorable regulatory regime would change the ‘use case’ narrative. ‘ around networks and currencies like ETH”, said Chhugani and Sapra.
The reading by Bernstein analysts comes just when the price of Bitcoin is around the mark of USD $61,000 per unit, this after a fall associated with the possible compensation process by Mt. Gox. Although they do not touch on this aspect, they do claim that the bearish sentiment and current prices may be transitory, resulting in a very good entry point for new investors.
Finally, in terms of estimates, the analysts of Bernstein updated their price prediction Bitcoin for 2025. In particular, they raised the price target to USD $200,000 from a previous projection that proposed a height of USD $150,000 for the main cryptocurrency next year.
Article by Angel Di Matteo / DailyBitcoin
Picture of DailyBitcoin, free to use, under public domain
WARNING: This is an informative article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that investments in cryptoassets are not regulated in some countries. They may not be suitable for retail investors as the entire amount invested could be lost. Check the laws of your country before investing.
