Crypto's regulatory headwind has turned into a tailwind following Trump's victory, Bernstein says
Analysts at Bernstein said that crypto’s regulatory headwind had turned into a tailwind following Donald Trump’s election victory.The analysts also reiterated their call for bitcoin to approach $90,000 by the end of this year and reach a bull cycle target of $200,000 in 2025.
Following Donald Trump’s win in the U.S. presidential election , analysts at research and brokerage firm Bernstein said that crypto’s regulatory headwind had now turned into a tailwind — and the market is “nowhere close to factoring in this shift.”
The analysts, led by Gautam Chhugani, told clients in a Wednesday note they expect a new “crypto-friendly” Securities and Exchange Commission Chair and Senate Banking Committee to accelerate regulatory clarity for the industry. Under current Chair Gary Gensler, the SEC has embarked on several legal battles with key players, including Coinbase, Binance, Kraken and Robinhood, as well as against DeFi, NFT and stablecoin projects.
The crypto industry seeks new rules on defining digital assets as something other than securities, the applicability of broker/dealer laws to crypto exchanges and DeFi, accelerated approvals for investment products like ETFs and enabling banks to own and custody crypto, Chhugani noted.
In particular, the analysts predict faster progress on stablecoin and market structure bills, positively impacting stablecoin issuers such as Circle and Paxos and U.S crypto exchanges. They expect progress on other crypto rules and definitions over the medium term, leading to a re-rating of broader crypto assets outside of bitcoin and ether, which have been “suppressed due to regulatory overhang and lack of clarity on [their] security status.”
Trump’s newfound pro-crypto stance put forward many policy promises during the campaign, including firing Gensler on “day one,” turning the U.S. into a bitcoin mining "powerhouse" and creating a national strategic bitcoin reserve, which the analysts also expect the new administration to make positive steps toward.
The Republicans are also set to pull off a sweep of the presidency, House and Senate, with Trump winning the popular vote, to the surprise of many. “The crypto super PACs were instrumental in sending crypto friendly representatives to the Senate and the House. We expect a new regime of crypto rule making and this transformational shift is not priced in,” the analysts said.
Bitcoin to reach $90,000 by year-end, $200,000 in 2025
The total crypto market cap breached $2.5 trillion as news of the election result became clear, Chhugani noted. Bitcoin hit a new all-time high above $75,000 earlier on election night and is currently trading for $73,815, according to The Block’s Bitcoin Price Page — up 7% over the past 24 hours. DeFi tokens such as Aave and Uniswap posted double-digit gains, alongside positive pre-market and early trading activity for crypto-related stocks like Coinbase and MicroStrategy on Wednesday.
The analysts warned that the market’s initial reaction might be to “sell the news” but suggested any such dip was a buying opportunity for crypto and related stocks, reiterating their call for bitcoin to move closer to $90,000 by the end of this year, and reach a bull cycle target of $200,000 by the end of 2025 under the president-elect.
Gautam Chhugani maintains long positions in various cryptocurrencies.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Tech giants bounce back after AI disruption, S&P 500 nears record high
Share link:In this post: Last week, the largest tech firms in the US experienced huge challenges from Chinese AI, DeepSeek. Apple and Meta reported positive results, boosting the S&P 500. The Magnificent Seven’s price-to-earnings ratio is now 31.
OpenAI launches o3-Mini as it fights back against DeepSeek
Share link:In this post: OpenAI has launched its o3-Mini AI model to fight back against DeepSeek’s latest model. The company mentioned in its blog post that the o3-Mini is the most cost-efficient model in their reasoning series. DeepSeek’s breakthrough caused a $1 trillion tech selloff while putting pressure on AI chip makers.
Crypto robbers face 76 years in prison for kidnapping and assault
Share link:In this post: A group of crypto robbers have been sentenced to jail for several counts of kidnap, theft, and assault. The robbers kidnapped the victim, tied him, and assaulted him before stealing his stash of cryptocurrency. Police investigation uncovered the illicit activities that the criminals were carrying out before their arrest.
Purpose Investments files for the first-ever Ripple (XRP) ETF in Canada