- According to Bernstein, Bitcoin could see massive gains if Donald Trump wins the 2024 presidential election.
- Trump’s growing support for cryptocurrency suggests a more favorable regulatory environment than Harris’, the firm said.
- Analysts predict bitcoin could hit $80,000 to $90,000 by December if Trump wins.
Owning bitcoin could be the latest example of a “Trump trade” that could lead to massive gains if the former president returns to the White House next year.
Bernstein analysts said in a note published Monday that Donald Trump’s recent embrace of the crypto industry suggests that a potential Trump administration would be much more supportive of digital assets than a Harris administration.
“Crypto is one of the rare cases where the difference in the election outcome could determine the fate of the industry,” said Gautam Chhugani, an analyst at Bernstein.
Trump’s growing friendliness toward the crypto industry is a progression that has been going on for years.
In July, Trump gave a 45-minute speech at the Bitcoin conference and has since mentioned crypto policy in nearly every speech he has made. He has also released several NFT collections over the past two years.
At the Bitcoin conference, Trump said he would present a plan “to ensure that the United States is the crypto capital of the planet and the global bitcoin superpower.”
Chhugani predicted that bitcoin could reach new highs later this year if Trump wins the election, with the cryptocurrency potentially trading in the $80,000 to $90,000 range by December.
This represents an upside potential of up to 59% from current levels of $56,539 as of 2:04 p.m. Bitcoin peaked just under $74,000 in March.
As for why there is such upside potential for bitcoin if Trump wins in November, Chhugani argued that a positive regulatory environment for cryptocurrencies is not yet priced into the market.
“With strong regulatory challenges, decentralized finance has not seen the participation of institutions and banks to create blockchain-based financial products,” Chhugani explained.
He added: “A positive regulatory environment would remove political risk for financial institutions and banks that wish to participate, thereby removing the handicap of digital assets that cannot compete with traditional assets for institutional flows.”
According to the note, easing regulations on cryptocurrencies could spur innovation in the sector and bring users back into the ecosystem.
Bitcoin could be leading the way in a potential Trump victory in November, with the cryptocurrency up 34% year-to-date.
“The election remains difficult to predict, but if you are long crypto here, you are likely taking a position on Trump,” Chhugani concluded.
