According to analysts at the international research and brokerage business Bernstein, Donald Trump’s increasing prospects of winning the 2024 election are driving the bitcoin boom.
They cite MicroStrategy’s stock, which has increased 191% thus far this year, as a major indicator of an impending market breakout.
Trump’s electoral chances are driving a greater cryptocurrency rise and pushing bitcoin higher, as he is currently leading in important swing states.
Bernstein Analysts Expose That Trump’s Election Prospects Are Fueling Bitcoin’s Rise
Analysts at the international research and brokerage firm Bernstein have closely linked the recent surge in bitcoin to former U.S. President Donald Trump’s growing chances of winning the 2024 U.S. presidential election. MicroStrategy’s stock (Nasdaq: MSTR) is a key indicator for a possible market breakout.
In a letter addressed to clients, Bernstein analysts Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia stated:
We think the restoration of Bitcoin’s correlation to Trump’s election chances is what’s driving the cryptocurrency’s current surge.
“Despite the bipartisan support for digital assets, the crypto market bid is stronger as Trump’s odds improve on the election prediction markets,” they continued. According to Polymarket, Trump is currently leading in five of the six swing states.
Bernstein also highlighted Microstrategy’s performance, pointing out that its stock outperformed bitcoin in 2024, rising 191% as opposed to 55%. The experts claim that Microstrategy’s calculated use of debt and equity to purchase Bitcoin has been successful. They explained:
Microstrategy capitalized on the lows by issuing equity and convertible debt (almost $2 billion) to buy the Bitcoin dip.
They also made the following statement regarding bitcoin miners: “We expect the pure-play miners to catch up with the AI-focused miners as bitcoin continues to gain strength.”