Key Points
- Bitcoin’s value could reach $90,000 if Donald Trump wins the 2024 U.S. presidential election, according to Bernstein research firm.
- Trump’s pro-Bitcoin policies could significantly bolster the cryptocurrency market, the report suggests.
Bernstein, a research firm, has predicted a potential surge in Bitcoin’s value to $90,000, should Donald Trump secure victory in the 2024 U.S. presidential elections. The firm’s analysts posit that such a victory could significantly stimulate the cryptocurrency market, given Trump’s supportive stance towards Bitcoin.
Trump’s Pro-Bitcoin Policies
Trump has publicly expressed his support for Bitcoin, often referencing it in policy speeches. He has advocated for the U.S. to take a leading role in the crypto industry, and proposed the nation become a Bitcoin mining powerhouse. Furthermore, he has suggested appointing a crypto-friendly chairman for the Securities and Exchange Commission (SEC), establishing a national strategic Bitcoin reserve, and forming a crypto advisory council for the President.
Bernstein’s report underscores that these initiatives could foster a positive regulatory environment for cryptocurrencies, something that has been notably absent in recent years. The crypto market has encountered challenges from both macroeconomic factors and stringent regulatory actions over the past three years.
The regulatory landscape has been particularly harsh, with actions taken against major crypto companies such as Coinbase and Uniswap. The analysts argue that if Trump wins, his administration’s policies could spur innovation and encourage wider adoption of cryptocurrencies.
However, the report also cautions that if Vice President Kamala Harris wins the election, Bitcoin could face a significant downturn. Analysts predict that in this scenario, Bitcoin might drop below its current floor of $50,000 and potentially fall to a range between $30,000 and $40,000.
This predicted drop is attributed to Harris’s lack of explicit support for cryptocurrencies, as she has not addressed crypto in her speeches or policy proposals. While the Harris campaign has engaged with crypto industry leaders, analysts expect a much larger gap in the crypto policies between the two candidates.
Election Outcome and Market Recovery
The report also suggests that the recovery of the crypto market could be closely linked to the election’s outcome. A favorable result for Trump could remove existing barriers, allowing financial institutions to participate more actively in the market.
Bernstein’s report is released at a time when Bitcoin ETFs are losing momentum, indicating a decline in institutional interest. These ETFs have seen their longest run of daily net outflows since their inception, with approximately $1.2 billion withdrawn over eight days through early September.
In the coming weeks, Trump’s rising support in recent polls could influence market sentiment. According to prediction markets like Polymarket, Trump is currently leading by a slight margin, with a 52% chance of winning compared to Kamala Harris’s 47%. Following the upcoming debate, Bitcoin’s price trajectory remains uncertain as traders hedge their bets in preparation for potential volatility.
