The value of Bitcoin (BTC) has reached new ATH records after Trump’s victory. In this regard, Bernstein recommends clients to increase their exposure to digital assets, predicting a sustained rally thanks to a more favorable political environment for cryptocurrencies.
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The victory of Trump and the prospect of more favorable regulation push the value of Bitcoin (BTC) to new ATH
Bitcoin (BTC) has reached a new all-time high, driven by a political and market climate that promises significant transformations for the cryptocurrency sector.
The recent electoral victory of Donald Trump has sparked the enthusiasm of investors, leading to a surge in the value of Bitcoin and a general recovery of the crypto market.
In response to these developments, the analysts at the trading company Bernstein published a note on November 19 urging their clients to seize this unique opportunity.
According to Bernstein, in fact, the Bitcoin rally might be just at the beginning. The analysts of the company have emphasized that the cryptocurrency market still has a significant margin for growth.
Furthermore, Trump’s victory could pave the way for more favorable regulation in the United States, one of the key markets for the adoption and development of crypto technologies.
Gautam Chhugani, head of the digital assets team at Bernstein, stated:
“Do not fight this. Welcome to the bull market of cryptocurrencies: buy everything you can.”
Statement that reflects the prevailing optimism among many industry experts. The rise of Bitcoin has been fueled by expectations of regulatory changes under the Trump administration.
The Republican candidate, now president-elect, has repeatedly expressed the desire to remove Gary Gensler, the current chairman of the Securities and Exchange Commission (SEC), known for his strict approach towards the crypto sector.
The possibility of replacing Gensler with a pro-crypto leader, such as Wall Street lawyer Richard Farley, could lead to more friendly regulations for cryptocurrency companies.
The prospect of a more permissive regulatory environment has given a strong boost to the market. Furthermore, in addition to Trump, other Republican leaders, including Vice President-elect JD Vance and influential politicians RFK Jr. and Vivek Ramaswamy, have expressed their support for Bitcoin.
Their shared vision of a more welcoming future for cryptocurrencies could catalyze further investments in the sector.
Bernstein: an appeal to strengthen exposure to cryptocurrencies
In its note to investors, Bernstein urged not to underestimate the opportunities of the current market. Despite the strong gains of Bitcoin, analysts are convinced that there is still room for significant growth.
The 20% surge in the overall market capitalization of cryptocurrencies, which exceeded 2.92 trillion dollars after Trump’s victory, is just an initial sign of a potential parabolic bull rally.
Greg Cipolaro, head of research at the New York Digital Investment Group, confirmed this optimistic view, stating that there are no longer valid reasons to avoid holding Bitcoin.
Cipolaro explained that, with the Republicans in control of the White House and Congress, it is likely that the main government agencies will adopt a more favorable attitude towards digital assets.
This could include the SEC, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Department of the Treasury.
Furthermore, the market projections are equally bold. In October, Bernstein predicted that Bitcoin could reach $200,000 by the end of next year, an estimate that some might consider cautious.
Peter VanEck, CEO of VanEck, offered an even more ambitious forecast, suggesting that BTC could reach $300,000 by April 2025.
Institutional investors spring into action
In any case, the expectations of a bull market are not limited to retail investors. It is no coincidence that institutional investors are already taking a position.
The spot Bitcoin ETF by BlackRock, named IBIT, has recently reported a net asset value of 33.2 billion dollars, surpassing the value of the company’s gold-based ETF, which stands at 32.9 billion dollars.
This data highlights the growing interest of institutions in cryptocurrencies, with Bitcoin at the center of investment strategies.
Microsoft has also revealed, in a recent document filed with the SEC, that it is considering the possibility of investing in Bitcoin.
The adoption of Bitcoin by companies of this caliber could give further momentum to its price and strengthen confidence in the sector.
Source: https://en.cryptonomist.ch/2024/11/20/the-value-of-bitcoin-btc-reaches-new-ath-bernstein-advises-adding-crypto-to-the-portfolio/