While Bitcoin (BTC) has fueled the expectation of an uptrend in the market with its recent rise, analysts also expect the upward trend to continue.
At this point, Bernstein analysts speaking to The Block said that Bitcoin's recent rise is due to its correlation with Donald Trump's increasing probability of being elected.
Noting that Bitcoin rose by nearly 14% in October and surpassed $65,000 thanks to its correlation with Trump's rising election odds, analysts stated that Bitcoin is getting stronger as Trump's election chances increase.
Analysts also added that MicroStrategy stock serves as a leading indicator of potential further price appreciation.
Gautam Chhugani, Mahika Sapra and Sanskar Chindalia wrote in a note to their clients:
“We believe that Bitcoin’s recent rise and strength is due to BTC reversing its relationship with Trump’s increasing election odds.
“Although both parties have shown support for digital assets, the crypto market is stronger as Trump’s election odds in prediction markets increase.”
Bernstein analysts reiterated their predictions that Bitcoin could reach $80,000 to $90,000 if Trump wins next month’s presidential election. They also said they expect BTC to perform well in the long term regardless of who wins, but they also reiterated their warning that Bitcoin could test the $40,000 range again in the short term if Harris wins.
Noting that MicroStrategy’s BTC strategy has made MSTR a leading indicator for Bitcoin, analysts said that the company’s BTC strategy signals a bullish trend for BTC.
*This is not investment advice.