Key Points:
Read more: Select Bernstein’s Bitcoin Miners Rating: Riot, CleanSpark, IREN ‘Outperform’
The firm says the main reason for such tremendous value for Bitcoin would derive from institutional adoption, technological improvement, and sustained demand within the cryptocurrency markets rather than changes in political orientation.
Analysts at Bernstein refer to Bitcoin as “digital gold” and identify scarcity as a key factor that will continue to drive prices higher. They attribute the lack of financial discipline in the US, along with higher debt and expansionary monetary policies, to driving demand for robust assets like Bitcoin. And if all that is not enough, the successful launch of Bitcoin ETFs in the US will pour more petrol on this fire.
Though political feeling can affect short-term market fluctuations, Bernstein is of the opinion that the long-term outlook for Bitcoin remains independent of the election outcome for the most part. Republican candidate Donald Trump is perceived as more friendly to digital-asset markets, and on the other hand, there’s Democratic candidate Kamala Harris, who most likely will continue the hard stance taken by the current administration. Bernstein, however, insists the result will be overcome by broader market dynamics.
The company further details what might happen with Bitcoin price in 2025 depending on who wins the election. If Trump is elected, Bitcoin can jump above the $73,800 peak reached in 2017 to $80,000-$90,000 by January 20. Should Harris win, Bitcoin may be corrected down to about $50,000 before recovering.
Standard Chartered also seems to think the same way as Bernstein’s projections, with a possible surge to $200,000 irrespective of the election outcome. Geoff Kendrick, the head of digital assets research at the bank, said the growing demand and expected U.S. Federal Reserve interest rate reductions drive such a price surge.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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