Former U.S. President Trump, who supports cryptocurrencies, gained momentum after his assassination attempt, driving Bitcoin to surge this month, once breaking through the $68,000 mark. In this regard, Bernstein analysts Gautam Chhugani and Mahika Sapra pointed out that the market has not actually digested the positive changes in cryptocurrency regulation after Trump won the election, and there is still more room for growth.
Bitcoin hasn’t finished rising yet?
They wrote in a note to clients on Monday that Bitcoin prices reacted positively to the Republican Party's rising victory margin, with concerns over Trump's pro-cryptocurrency stance ahead of his July 27 speech at a Bitcoin conference. With confidence, there is still huge room for institutional investors to allocate to cryptocurrencies and crypto stocks.
Further reading: Trump will speak at the Bitcoin Conference next week. Will it be a critical moment for cryptocurrency?
On the other hand, analysts pointed out that momentum in the Bitcoin spot ETF has returned, with net inflows exceeding $2 billion in the past two weeks. Since its launch in January, total net inflows have exceeded $17 billion, with total assets under management reaching $60 billion, while cryptocurrency stocks have performed even better than Bitcoin, rising 22% in the last week.
Bitcoin miners will perform better
The report also predicts that large Bitcoin miners such as Marathon, Riot, and CleanSpark will perform well, and their stock prices will be driven by the price of Bitcoin and the potential cash flow from their operational expansion plans. These miners will not hesitate to raise funds to expand Its Bitcoin mining market share, and the stock prices of miners such as IREN and Core Scientific that implement hybrid Bitcoin mining and AI data center strategies are also undervalued.
Analysts also believe that Robinhood is well-positioned in the market due to its competitive stock price and 11 million active young traders. It is expected that after the company’s acquisition of Bitstamp, cryptocurrency trading revenue will increase significantly and will account for 20% of the total by 2025. 40% of revenue. (Currently this proportion is only 7%)
In addition, analysts view MicroStrategy as an active leveraged Bitcoin stock strategy. MicroStrategy currently holds 1.1% of the total number of Bitcoins and is expected to reach $41 billion in Bitcoin holdings by 2025, driving MicroStrategy’s target price It is looking at $2,890, a 60% increase from the current price of $1,800.
Optimistic about 200,000 mg of Bitcoin next year
Finally, Gautam Chhugani and Mahika Sapra raised their Bitcoin price targets to $200,000 by the end of 2025, $500,000 by the end of 2029, and $1 million by the end of 2033. They also hold long positions in multiple cryptocurrencies.
