Bernstein analysts advised their clients to invest in Crypto, writing “Don’t fight this, welcome to the crypto bull market – buy all you can.”
After Donald Trump’s electoral victory, Bitcoin hit an all-time high above $85,000, prompting analysts at Bernstein to issue a strongly bullish call on the crypto sector.
The research team, led by Gautam Chhuganiurged investors to turn to crypto “as soon as possible,” emphasizing that a new crypto-friendly regulatory environment is on the horizon.
“Don’t fight this,” Chhugani wrote in an explosive memo to his clients Monday. “Welcome to the crypto bull market: buy all you can.”
For investors who were previously hesitant due to regulatory concerns, Chhugani advised them to “flip their mental model” in light of Trump’s victory and anticipated policy changes, starting with a new pro-SEC chairman. crypto.
A new era of crypto policy
Trump, once skeptical of cryptocurrencies, pivoted during his campaign by proposing a national stockpile of Bitcoin and pledging to “end the war on cryptocurrency regulation.” Although the stockpile would require legislative approval and may not come to fruition until 2025, Bernstein Analysts We see a clear trend: “The direction in which Bitcoin will become a treasury asset, held by businesses, governments and institutions, seems obvious to us,” they wrote.
Adding to the optimism, Trump’s transition team includes notable crypto supporters such as Vice President-elect JD Vance, RFK Jr. and Vivek Ramaswamy, all of whom have disclosed their Bitcoin holdings. Prominent Silicon Valley backers including a16z and David Sacks are further bolstering the pro-crypto narrative. According to Chhugani, the crypto industry spent $130 million during the election cycle supporting favorable candidates, and demand for Bitcoin exchange-traded funds (ETFs) has already generated $4.7 billion in inflows in recent weeks.
Bitcoin looks set for a huge week
Bitcoin started the week strong, climbing to nearly $85,400 on Monday, up almost $20,000 in just one week, with no signs of slowing down.
Source: Brave New Piece Bitcoin Liquid Index
BlackRock’s $IBIT BTC ETF saw $1 billion in volume in the first 35 minutes of Monday. The day after the election it happened in 20 minutes, so a little less than last Wednesday but still quite intense. “Pretty good early indicator of significant influxes this week” reported Eric Balchunas, ETF analyst.
Source: X
There are 10 assets in the world that have reached 1 trillion. Bitcoin was the fastest. Sometimes the best choice is simply to ride the fastest horse.
Source: X
Expanding Crypto Exposure
Bernstein outlined various routes to gaining exposure to crypto assets. Institutional investors are encouraged to consider:
- Spot Bitcoin and Ethereum ETFs
- Public Bitcoin miners like Riot Platforms and Core Scientific
- AI-integrated miners such as Iris Energy (IREN) and CleanSpark
- Companies with Bitcoin Corporate Treasuries, including MicroStrategy
- Crypto exchanges including Robinhood and Coinbase
For those who can purchase cryptocurrencies directly, Bernstein recommended a diversified basket including BTC, ETH, SOL, OP, ARB, POL, UNI, AAVE and LINK.
Bullish Predictions: $200,000 Bitcoin by 2025
Chhugani’s team remains confident in its Bitcoin price target of $200,000 by the end of 2025, even though Bitcoin is trading at $85,000, up 97% year to date. “We believe the risk-reward ratio remains favorable over the next 12 months,” the note said.
