Bitcoin Could Be the "Trump Trade": Former President's Return to the White House May Spark Crypto Bull RunHolding Bitcoin could be the latest example of a "Trump trade," potentially yielding massive returns if the former US President returns to the White House. A Bernstein analyst noted in a report on Monday that Trump's recent enthusiasm for the cryptocurrency industry suggests a potential Trump administration would be more favorable toward digital assets compared to the Harris administration
Bitcoin Could Be the "Trump Trade": Former President's Return to the White House May Spark Crypto Bull Run
Holding Bitcoin could be the latest example of a "Trump trade," potentially yielding massive returns if the former US President returns to the White House. A Bernstein analyst noted in a report on Monday that Trump's recent enthusiasm for the cryptocurrency industry suggests a potential Trump administration would be more favorable toward digital assets compared to the Harris administration.
"Crypto is one of the few instances where a difference in the election outcome could decide the fate of the industry," said Bernstein analyst Gautam Chhugani. This view is not baseless, given Trump's friendly stance towards the cryptocurrency industry over the years. He made a 45-minute speech at the Bitcoin conference in July and has brought up cryptocurrency policy in almost every speech. He also released several NFT collections over the past two years.
At the Bitcoin conference, Trump stated he would create a plan to "ensure that America is the global capital of cryptocurrency, the Bitcoin superpower of the world." Chhugani predicts that if Trump wins the election, Bitcoin could surge to new highs later this year, potentially trading between $80,000 and $90,000 by December, representing a potential upside of 59%. Bitcoin peaked just under $74,000 in March.
As for why Bitcoin has such large upside potential if Trump wins in November, Chhugani believes the market has not yet priced in a beneficial regulatory environment for crypto. "Decentralized finance has not been seeing participation from institutions and banks to build blockchain-based financial products due to massive regulatory challenges," Chhugani explained. He added, "A favorable regulatory environment would eliminate the policy risk for institutions and banks to participate, thereby eliminating the barrier for institutions to direct capital flows from traditional assets to digital assets."
The report notes that easing cryptocurrency regulations can potentially spur innovation in the space and attract users back to the ecosystem. Bitcoin could be gradually pricing in a potential Trump win in November, with the cryptocurrency already up 34% year-to-date.
Chhugani concluded, "The outcome of the election is still unpredictable, but if you are bullish on crypto, you are likely making the Trump trade."
Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])
