- Bernstein analysts believe the market has not priced in a positive shift in crypto regulation if Donald Trump wins the 2024 presidential election.
- They highlighted 7 crypto stocks to watch ahead of Trump’s speech at the Bitcoin conference in Nashville: Riot Platforms, CleanSpark, Marathon Digital Holdings, Core Scientific, Iris Energy, Robinhood, and MicroStrategy.
- The analysts expect Bitcoin to cross $100K in 2025, with a cycle peak close to $200K, driven by accelerated institutional adoption.
Former President Donald Trump is set to speak at the Bitcoin 2024 conference in Nashville on July 27th. Bernstein analysts believe the market has not priced in the potential positive impact on crypto if Trump wins reelection in 2024. They highlighted 7 crypto stocks to watch leading up to Trump’s speech.
Bernstein’s Bullish Crypto Outlook
In a July 24th note, Bernstein analysts led by Gautam Chhugani said they see significant upside for select crypto companies if Trump wins again. They believe institutional investor allocations to crypto and crypto stocks will increase given an improved regulatory environment under Trump.
Bitcoin and crypto stocks saw gains last week, which Bernstein says indicates the market’s optimism. However, they believe the potential impact of a Trump victory is still underestimated.
Bitcoin Mining Consolidators
Bernstein sees these stocks as “high-beta Bitcoin proxies” that will benefit from Bitcoin price increases and operating leverage.
Riot and CleanSpark were noted for their large Bitcoin treasuries and rapid hash rate growth. Marathon was noted for pivoting to a capital intensive self-mining model from its previous capital light strategy.
Bitcoin/AI Data Center Hybrids
- Core Scientific
- Iris Energy
These companies have a unique market position with their access to power resources, per Bernstein. They noted Core Scientific’s large co-hosting deal with an NVIDIA partner and Iris Energy’s execution of an AI cloud deal.
Crypto Exchange/Brokerage
- Robinhood
Bernstein expects Robinhood’s revenue to double over the next 2 years largely driven by crypto transaction revenue growth.
Bullish Bitcoin Price Outlook
Bernstein projects a Bitcoin price target of over $100,000 in 2025 and close to $200,000 at the peak of the next bull cycle. This is based on their expectation of accelerated institutional adoption from ETFs and corporate treasuries.
Potential Trump Crypto Policy Impact
The analysts say Bitcoin has reacted positively to any improvement in the odds of a Trump victory, believing he will have a crypto friendly policy stance. They cited his past positive comments on crypto and upcoming speech at the Nashville conference.
Conclusion
Bernstein believes the market has underestimated the potential upside for crypto assets and stocks if Trump wins reelection. With his speech on the horizon, they highlighted key stocks to monitor in the mining, data center, and brokerage sectors. Their bullish BTC price outlook adds to the bull case.
