Wall Street broker Bernstein’s recent research report suggests that the outcome of the upcoming U.S. elections could significantly impact the cryptocurrency markets. The report indicates that a victory for Donald Trump in November could be bullish for crypto markets, while a win for Kamala Harris might be bearish.
According to Bernstein, bitcoin has shown signs of weakening in response to shifting odds and polling data favoring Harris. The report anticipates that bitcoin, the world’s largest cryptocurrency, will likely remain “rangebound” until clearer election signals emerge.
Polymarket, a prediction market where individuals place bets on future events, has been cited as a tool for gauging market sentiment. Bernstein notes that Republican supporters have characterized the current market reaction as an “initial honeymoon phase” and have raised concerns about potential manipulation of Polymarket odds.
The report highlights that the Trump-led Republican side has actively engaged with the crypto community, including bitcoin miners and other stakeholders. Trump’s campaign has emphasized favorable policies for cryptocurrency, even proposing the creation of a national bitcoin reserve. During a recent speech at the Bitcoin Conference in Nashville, Trump reiterated his commitment to maintaining a strategic national bitcoin reserve and pledged not to sell the government’s seized bitcoin if re-elected.
Bernstein’s analysts, led by Gautam Chhugani, underscore that the Republican side’s proactive stance on crypto has contributed to positive sentiment among crypto voters. This contrasts with the uncertainty and potential negative sentiment associated with a Harris victory, according to the report.
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