Bernstein Analysts: Bitcoin’s “Risk On Mode” Returns Ahead of US Elections
Bitcoin has experienced a recent surge in price after a prolonged period of decline, and analysts at Bernstein believe that this is due to a shift in investor sentiment towards risk-taking as the US presidential elections draw near. The analysts suggest that the increasing probability of Donald Trump winning the election is driving up the price of Bitcoin, and as this probability increases, so too may the price of the cryptocurrency.
As Bitcoin approaches the $70,000 resistance level, Bernstein analysts note that investors and the market are entering a “risk-on” mode. They attribute this shift to strong inflows into spot ETFs, positive performance in the crypto stock markets, and increased retail trading. The analysts argue that these factors reflect a decrease in concerns about downside risk and an increase in investors’ willingness to take on more risk.
The analysts also point out that Bitcoin’s rise is in line with other risky assets, and they attribute this to the crypto-friendly stance of Donald Trump compared to his rival Kamala Harris, who has expressed support for crypto regulation. According to Bernstein, investors see less downside risk with a potential Trump victory, which further motivates them to take on more risk.
The return of risk-taking mode has led to a bullish sentiment among investors and the market, as evidenced by the $2.1 billion net inflow into spot Bitcoin ETFs last week. The analysts suggest that this increase in ETF inflows indicates a growing spot demand for Bitcoin, driven by the increasing probability of a Trump victory and the resulting demand for BTC.
It is important to note that this analysis does not constitute investment advice. Investors interested in cryptocurrencies can consider registering with Binance exchange, which offers a 20% commission discount.
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