Bernstein: The bull crypto market has begun. Buy everything you can

The material is not an investment recommendation and is published for informational purposes only.

What’s new? Analysts at broker Bernstein have announced the onset of a bull market in cryptocurrencies and urged traders to include digital assets in their portfolios “as soon as possible”: “buy everything you can”. The authors of the report urged those investors who previously refrained from buying cryptocurrencies due to regulatory concerns to “invert their mental model” as a favorable regulatory environment is expected after the US election.

Material by The Block

What else is known? As a result of the November 5 election, Donald Trump became the US president again, and cryptocurrency supporters took the majority of seats in both houses of Congress responsible for passing new laws.

During the election campaign, Trump called to make the country a center of blockchain technologies and create a national bitcoin reserve. He also promised to fire the chairman of the Securities and Exchange Commission (SEC) Gary Gensler, who pursues a hostile policy to cryptocurrencies and prefers to regulate the industry through filing lawsuits against companies without creating clear rules for their work.

Expectedly, already in the process of counting votes, when Trump’s leadership became obvious, the bitcoin exchange rate updated the March record and rose above $75 000. On November 11, the asset set a new all-time high of $82 380, after which it partially corrected to $81 678. Overall, the first cryptocurrency has gained more than 21% since Election Day.

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Trump’s closest aides are also openly in favor of cryptocurrencies, Bernstein noted. Vice President-elect J.D. Vance, along with coalition team members Robert-Francis Kennedy and Vivek Ramaswamy, have disclosed their investments in bitcoin and expressed support for the industry.

Top Silicon Valley players such as Marc Andreessen and Ben Horowitz’s Andreessen Horowitz Venture Fund (a16z) and billionaire David Sacks are also backing Trump. In total, major players have spent $130 million to support cryptocurrency candidates this election cycle.

Bitcoin-based spot exchange-traded funds (ETFs), whose shares are traded on leading US stock exchanges, have also seen inflows since the election results were announced. On November 7 alone, the inflow amounted to $1,38 billion.

For investors who can buy cryptocurrencies directly, Bernstein recommended investing in several digital assets, including bitcoin (BTC), Ethereum (ETH), Solana (SOL), OP Mainnet (OP), Arbitrum (ARB), Polygon (POL), Uniswap (UNI), Aave (AAVE), and Chainlink (LINK).

“We remain confident in our $200,000 bitcoin price target by 2025 end. Even at $81K/bitcoin (+ 87% YTD), we believe risk-reward is favorable over next 12 months,” Bernstein concluded.