In an intriguing development that signals a resurgence in the cryptocurrency market, Bernstein, a notable research firm, has declared that ‘Crypto is Back‘. This statement comes amid a significant political shift in the United States, with the election of Donald Trump as the 47th President, which has apparently spurred various investor groups to increase their involvement in digital assets.
The political landscape has undergone a transformation with Trump’s victory, which has been interpreted by many in the financial sector as pro-crypto. Bernstein’s analysts, including Gautam Chhugani and Mahika Sapra, have observed that this shift is not just a signal but a catalyst for immediate action among investors. They’ve noted that the market has not yet fully priced in the positive regulatory changes expected under a Trump administration, especially in terms of crypto regulations which could become more favorable.
This newfound optimism is largely driven by Trump’s public stance on cryptocurrencies, which has been more welcoming compared to previous administrations. Bernstein’s research indicates that this political change is leading to a reevaluation of investment strategies, with many seeing cryptocurrency as the new ‘Trump Trade’, a term originally coined after the 2016 election to describe the surge in US stocks, Treasury yields, and the dollar.
The firm advises investors to “buy everything you can” in the crypto space, suggesting that the time to act is now. They highlight that Bitcoin, in particular, is seen as ‘digital gold’, offering a hedge against inflation, with its price potentially skyrocketing to $200,000 by the end of 2025. This bullish outlook is supported by the increasing institutional adoption of Bitcoin, including through ETFs and direct investments in mining companies.
Bernstein points to several avenues for investment exposure, including spot Bitcoin and Ethereum ETFs, public miners like Riot and Core Scientific, and even companies like MicroStrategy, which holds Bitcoin in its treasury. For those looking to invest directly in cryptocurrencies, they recommend a diversified basket of coins, emphasizing Bitcoin’s pivotal role due to its established market position and limited supply post-halving.
The sentiment on platforms like X also reflects this resurgence, with posts from influential figures in the crypto space echoing Bernstein’s call to action. The phrase ‘Crypto is Back‘ is becoming a rallying cry, signifying not just a return to form for digital currencies but a new era where political support could lead to unprecedented growth in the sector. https://x.com/Lutcheann