Bitcoin (BTC) has been at a competitive high (ATH) following the election victory of US president Donald Trump.
Add Crypto Exposure Early, Bernstein Tells Clients
Despite Bitcoin’s strong gains after the election, analysts at trading firm Bernstein remain convinced that the broader crypto market still has a lot of room for growth.
In a client note published on November 11, analysts at the trading firm Bernstein urged clients to add exposure to digital assets “as soon as possible.”
The digital assets team at Bernstein, led by Gautam Chhugani, endorsed the opportunities in the crypto market, saying, “Don’t fight this. Welcome to the crypto bull market – buy all you can.”
The timing of Bernstein’s bullish recommendation coincides with a 20% increase in the overall crypto market since Trump’s victory, from about $2.41 trillion to $2.92 trillion at the time of writing.
Referring to Trump’s pro-crypto stance, Chhugani urged skeptical investors not to overvalue digital assets due to regulatory concerns. He encouraged customers to “change their mindset” because of Trump’s stunning victory.
To recall, Trump has repeatedly emphasized that he will fire the current chairman of the US Securities and Exchange Commission (SEC) Gary Gensler shortly after assuming the office of the US president.
For the uninitiated, Gensler has become a controversial figure in the crypto industry due to the financial regulator’s perceived hostility towards the crypto industry.
Replacing Gensler with the pro-crypto SEC chair could open the door to more favorable regulations for crypto businesses in the US.
Reports have suggested that Trump may nominate Wall Street lawyer Richard Farley as the new chairman of the SEC, although this has yet to be confirmed.
It is noteworthy that besides Trump, other leaders of the Republican party, including the new Vice President of the United States JD Vance, RFK Jr., and Vivek Ramaswamy, revealed that they hold Bitcoin and promised support for the emerging industry under the Trump administration.
No Reason Not To Hold Bitcoin After Trump Wins
In addition to Bernstein’s endorsement, Greg Cipolaro, head of research at New York Digital Investment Group. said earlier today that there is no longer a risk to avoid holding BTC following Trump’s victory. Cipolaro says:
As Republicans take control of the White House and Congress, the leadership of major government agencies such as the SEC, OCC, FDIC, and the Treasury, are expected to shift to a more positive crypto environment. The new administration is likely to appoint leaders who view digital assets as an opportunity for economic growth and innovation, rather than primarily as regulatory challenges.
Recent trading patterns in crypto exchange-traded-funds (ETF) suggest that institutional investors may have positioned themselves for a potentially parabolic rally in digital assets, particularly Bitcoin.
Asset manager BlackRock’s IBIT spot BTC ETF recently report Total assets of $33.2 billion exceed the company’s gold-based ETF holdings, which are worth $32.9 billion.
In October, Bernstein predicted that $200,000 of BTC by the end of next year may be a “savings goal.” VanEck’s CEO offered an even more ambitious forecast, he raised that BTC could reach $300,000 by the end of April 2025.
The price of Bitcoin could also benefit from more acquisitions. In a recent filing with the US SEC, Tech juggernaut Microsoft revealed that it is currently exploring the option of investing in BTC.
BTC is trading at $81,912 at press time, up 2.8% in the last 24 hours. On a similar note, BTC dominance sits at 59.36%.
Featured image from Unsplash.com, Chart from TradingView.com