If Trump returns to the White House, is it possible for Bitcoin to hit a new high?
If Trump returns to the White House, it may push the price of Bitcoin to soar. Bernstein analyst Gautam Chhugani predicts that Trump's friendly attitude will benefit the cryptocurrency industry, potentially pushing Bitcoin to a high point of $80,000 to $90,000 in December. Trump's speech at the Bitcoin conference and his continued support for the industry have not yet been fully factored into the market, leading to a 34% increase in Bitcoin this year. He believes that the election results have a significant impact on the cryptocurrency industry
Holding Bitcoin may be the latest example of a "Trump trade," potentially bringing huge profits if the former U.S. president returns to the White House.
Analysts at Bernstein stated in a report on Monday that Trump's recent enthusiasm for the cryptocurrency industry suggests that a potential Trump administration would be more crypto-friendly compared to the Harris government. Bernstein analyst Gautam Chhugani said, "Cryptocurrency is one of the few cases where the outcome of an election could determine the fate of the industry."
Trump has shown a friendly attitude towards the cryptocurrency industry for several years. He delivered a 45-minute speech at a Bitcoin conference in July and has mentioned cryptocurrency policies in almost every speech. He has also released several NFT collections in the past two years.
At the Bitcoin conference, Trump stated that he would develop a plan to "ensure that the U.S. becomes the global capital of cryptocurrency and the world's Bitcoin superpower".
Chhugani predicts that if Trump wins the election, Bitcoin could soar to new highs later this year, with the trading price of the cryptocurrency potentially ranging between $80,000 and $90,000 by December, representing a potential increase of up to 59%. Bitcoin peaked at just under $74,000 in March.
As for why Bitcoin has such significant upside potential if Trump wins in November, Chhugani believes that the market has not yet priced in a regulatory environment favorable to cryptocurrencies.
"Decentralized finance has not received participation from institutions and banks to build blockchain-based financial products due to significant regulatory challenges," Chhugani explained.
He added, "A favorable regulatory environment would eliminate policy risks associated with institutional capital flows competing between digital assets and traditional assets."
The report notes that easing cryptocurrency regulations could stimulate innovation in the sector and attract users back to the ecosystem. Bitcoin may be gradually pricing in the potential of a Trump victory in November, with the cryptocurrency having risen 34% so far this year. Chhugani concluded:
"Election outcomes remain difficult to predict, but if you are bullish on cryptocurrencies, you are likely making a Trump trade."