A recent report by Bernstein suggests that Bitcoin might reach an unprecedented $90,000 by the year’s end if Donald Trump secures victory in the 2024 US presidential election. The report highlights that Trump’s favorable stance towards Bitcoin could unleash significant growth within the cryptocurrency market.
Trump’s Supportive Stance on Bitcoin
Trump has consistently advocated for the US to lead the charge in the crypto space, proposing various pro-Bitcoin policies. His plans include appointing a crypto-friendly SEC chairman, establishing a national Bitcoin reserve, and forming a presidential crypto advisory council. Bernstein’s report notes that these measures could foster a positive regulatory atmosphere for digital currencies.
Over the past three years, the cryptocurrency market has grappled with macroeconomic challenges and stringent regulatory actions. Regulatory crackdowns on key crypto entities like Coinbase and Uniswap have particularly strained the market.
Market Recovery Dependent on Election Outcome?
Bernstein’s report posits that a Trump victory could catalyze a market recovery by removing existing barriers and encouraging greater institutional participation. The report also mentions waning interest in Bitcoin ETFs, which have experienced substantial net outflows totaling $1.2 billion over eight days in early September.
Key Takeaways from Bernstein’s Report
- Trump’s win could propel Bitcoin to $90,000.
- Supportive policies might foster a favorable regulatory environment.
- Past regulatory actions have negatively impacted the market.
- Market sentiment could be influenced by Trump’s rising support.
- Kamala Harris’s victory might lead to Bitcoin dropping to $30,000-40,000.
With prediction markets indicating a 52% chance for Trump’s victory, the coming weeks could be crucial for Bitcoin’s trajectory. The market awaits the outcome of the upcoming debate, which could significantly impact Bitcoin’s price trends. Bernstein’s analysis underscores the high stakes involved in the election for the crypto market, painting a stark contrast between the potential impacts of a Trump versus a Harris administration.