The Market’s Blind Spot: Crypto Regulations and Trump Victory
If Donald Trump wins the US presidential election, analysts at the research and brokerage firm Bernstein said the market has not factored in a possible improvement in cryptocurrency laws. Gautam Chhugani and Mahika Sapra stated in a message to customers on Monday that the price of bitcoins is positively responding to perceived improvements in the odds for a Republican triumph, placing faith in Trump’s pro-crypto attitude ahead of his address at Bitcoin 2024 in Nashville on July 27.
We see significant headroom from institutional investors allocating to crypto and crypto stocks,
Chhugani & Sapra
With Chhugani and Sapra highlighting the implications for numerous crypto stocks inside Bernstein‘s coverage, crypto stocks did even better, rising 22% last week. The underlying bitcoin price and possible cash flows from their aggressive operational development plans are expected to drive price action, with analysts expecting significant bitcoin mining consolidators, including Marathon, Riot, and CleanSpark, to outperform.
Joe Biden’s Withdrawal Boosts Trump’s Chances
In an apparent attempt to boost Donald Trump’s chances of winning, Joe Biden withdrew from the U.S. presidential contest on Sunday and gave Vice President Kamala Harris his full support and endorsement in his stead as the Democratic Party’s nominee. Unsurprisingly, Biden’s chances of winning the election dropped to less than 1% on the decentralized prediction platform Polymarket, while Trump’s chances increased somewhat to 65% and Kamala Harris’s to 27%. Raising their target price for bitcoin to $200,000 by the end of 2025, $500,000 by the end of 2029, and $1 million by the end of 2033, Chhugani and Sapra announced their target in June.
FAQ
What is the Impact of Trump’s Potential Victory on Crypto regulations?
Trump’s potential victory could lead to the prediction of a positive shift in cryptocurrency regulations. This could mean a more liberal and supportive regulatory environment for crypto markets.
What Other Changes Could Trump’s Potential Victory Lead to Other Than Crypto Regulations?
Apart from cryptocurrency regulations, Trump’s potential victory could also lead to changes in general economic policies, tax regulations, and trade agreements, which could have broader implications for the markets.
What Does Bernstein’s Statement That the Market Isn’t Priced In Mean?
Bernstein’s statement that the market has not been priced in means that cryptocurrency markets have not yet taken into account the positive regulatory changes that Trump’s potential victory would bring, which could affect market valuations.
For more up-to-date crypto news, you can follow Crypto Data Space.
Leave a comment