According to analysts at Bernstein, the market has not priced in a possible positive shift in cryptocurrency regulation if Republican candidate Donald Trump wins the US presidential election. Analysts say the Bitcoin price has reacted positively to perceived improvements in the likelihood of a Republican win. They also say they believe in Trump’s pro-crypto stance. Bitcoin, meanwhile, is slowly recovering, although some on-chain metrics remain in the ‘red zone’.
Bernstein: Cryptocurrency market hasn’t priced in Trump’s possible victory!
Analysts at research and brokerage firm Bernstein say the market has not priced in a potential positive shift in cryptocurrency regulations if Donald Trump wins the US presidential election. Gautam Chhugani and Mahika Sapra note that the Bitcoin price reacted positively to the increased likelihood of a Republican win. They also say they are confident in Trump’s pro-crypto stance ahead of his speech at Bitcoin 2024 in Nashville on July 27. In this context, analysts add, “We see a significant gap in institutional investors allocating to cryptocurrencies and crypto stocks.”
As you follow on Kriptokoin.com, Bitcoin is up nearly 8% in the past week and is currently trading at $67,817. Analysts note that with net inflows of more than $2 billion in the last two weeks, total inflows have surpassed $17 billion since their launch in January. In addition, noting that total assets under management have reached $ 60 billion, they conclude that “Bitcoin ETF momentum has returned”.
Glassnode indicators show bullish optimism for Bitcoin
Bitcoin’s technical stability is something that many centralized systems can only dream of, as the asset has been operating without major disruptions for the last 15 years. Besides technical stability, BTC can also offer monetary growth, especially in the medium term. Bitcoin’s score on the market type metric is currently 7, which is the same as last week, but much lower than the 52-week average of 41. Compared to the volatility of the previous year, this indicates a relatively stable market environment.
The environment is low risk, as evidenced by the market risk indicator remaining at zero. This represents a significant drop from last week’s high risk score of 50 and below the 52-week average of 22. This means that compared to earlier this year, Bitcoin is now seen as a safer investment option.
Price momentum is shown by the price momentum metric, which has a downward trend of -24. While this is still negative, it is better than the previous week’s -60 and shows an overall positive dynamic. The 52-week average of 18 suggests that while momentum may be negative in the near term, there may be reason for hope when it turns positive. On-chain fundamentals, at 54 points, this area of the market is neutral. The 52-week average of 52 is in line with this score, which is similar to last week’s. Depending on the activity and health of the network, this stability in on-chain fundamentals points to a balanced outlook and the potential for a rebound for BTC.
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