Financial firm Bernstein has released a report highlighting the potential impact of the upcoming U.S. presidential election on Bitcoin (BTC) and the cryptocurrency market.
Financial firm Bernstein has released a report highlighting the potential impact of the upcoming U.S. presidential election on Bitcoin (BTC) and the cryptocurrency market. The analysts have drawn a stark contrast between the possible outcomes of a Kamala Harris victory versus a Donald Trump win.
According to the report, a Harris victory could see Bitcoin testing the $30,000-$40,000 range, a notably bearish outlook. At the current price of $56,665, that represents a significant decline of 47%, should BTC hit $30,000. The analysts attribute this potential downturn to the continuation of the challenging regulatory environment that has characterized the crypto sector in recent years under the current administration.
On the flip side, Bernstein's analysts are more optimistic in the event of a Trump victory. They projected that Bitcoin could soar to the "$80K-90K range" by the fourth quarter under such a scenario. This bullish outlook is due to Trump's pro-crypto stance and his vocal support for making the U.S. the "Bitcoin and Crypto Capital of the world."
So far, the Trump campaign has received a warmer reception from the crypto industry. They further added that regulatory actions have "eroded the trust of the crypto community and forced them down the partisan route." The Trump family recently launched a DeFi lending platform, World Liberty Financial, on Ethereum.
Bernstein's analysis suggests that a crypto-friendly election outcome and positive regulatory environment are not currently priced into the market. This implies that a shift towards a more favorable regulatory landscape could potentially spur innovation and attract institutional investors back to the blockchain industry.
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