Amid the battering the crypto market has received on Monday, Bernstein said Q3 for Bitcoin will be heavily influenced by macroeconomic factors and political developments.
"Overall, the Bitcoin and crypto market will likely trade off macro and election cues for most of Q3, 2024," the Bernstein analysts wrote in a note Monday morning, highlighting the interconnectedness of digital assets with broader economic and political trends.
The report notes that BTC experienced a significant correction over the weekend, continuing the bloodbath on Monday, attributing it to "fears in equity markets" and wider economic concerns, rather than crypto-specific issues.
Despite the recent volatility, Bernstein remains optimistic about Bitcoin's long-term prospects.
"We don't see any incremental negatives for crypto here. Bitcoin's institutional adoption trends - ETF inflows and wirehouse/bank approvals remain on track," the report asserts.
Morgan Stanley Advisors Given Go-Ahead to Pitch Bitcoin ETFs to Investors
Investment behemoth Morgan Stanley on Friday said it will soon permit its financial advisors to actively promote Bitcoin ETFs to eligible clients, marking the first time a major Wall Street bank has taken such a step. Starting next Wednesday, the firm's vast network of approximately 15,000 financial advisors will be authorized to pitch shares in BlackRock's iShares Bitcoin Trust and Fidelity's Wise Origin Bitcoin Fund to suitable investors. CNBC first reported the news. A source familiar with th...
The analysts flagged the U.S. presidential election as a major short-term catalyst for crypto markets.
The analysts note that "Bitcoin remains a 'Trump trade'" with crypto markets generally favoring Trump as a crypto-friendly candidate.
The report suggests that narrowing odds between Trump and Harris in prediction markets have contributed to recent weakness in Bitcoin and crypto prices. Vice President Kamala Harris and former President Trump are virtually tied, 50 to 49 percent respectively, in new CBS News/YouGov polling data that was released yesterday.
Bernstein Institutional involvement in the crypto space continues to grow, with Bitcoin ETFs seeing steady inflows exceeding $17 billion year-to-date.
The report mentions recent approvals from major financial institutions, stating, "We expect more wirehouse approvals into Q3 and Q4, thus providing further on-ramps for asset allocation to Bitcoin."
Olive Branch From Kamala Harris to Crypto Is 'A Tad Late', Says Bernstein
A new report from Bernstein Research highlights the growing prominence of cryptocurrency in the 2024 U.S. presidential election—and concludes that Kamala Harris’s olive branch could be arriving “a tad late.” According to the report, the Kamala Harris campaign is seeking to reset relations with crypto companies, having reached out to prominent firms in the sector. Any reset would follow a years-long history of regulatory actions against the crypto industry under the current administration. Bernst...
Looking ahead, Bernstein anticipates that BTC and crypto markets will likely remain range-bound until the U.S. elections, "trading off catalysts such as the Presidential debate and the final election outcome."
The analysts suggest that investors seeking exposure to a potential "Trump trade" could consider adding Bitcoin or Bitcoin-related equities to their portfolios.
However, they also note that if broader equity markets recover due to a Federal Reserve response, "we would expect Bitcoin and crypto markets to follow."
Edited by Stacy Elliott.
