Analysts say Bitcoin will see upside if Trump wins presidency

Bitcoin (BTC) could see benefits if Republican candidate Donald Trump wins the United States presidential race, according to a recent Bernstein Research report.

Bernstein, according to Decrypt, suggested that Bitcoin may see a major influence in its price trajectory depending on who wins the White House. According to the report, Trump’s victory could have Bitcoin bottom out and grow its price and market cap again:

“We believe the Bitcoin price would bottom, only if the crypto market catches a bid on a likely Trump win, given [the] crypto market continuing to interpret only a Republican win as positive for crypto policy.”

The reports come as the market direction appears  indecisive, with choppy sideways action between two price points. Bernstein attributes this action in the Bitcoin market to the uncertainty surrounding the U.S. elections.

Crypto-powered prediction market Polymarket sees Trump and Democratic candidate Kamala Harris close to a tie. Data shows that $666.44 million has been bet on the market, almost evenly divided between the two candidates.

Bernstein research also highlights major capital rising initiatives among United States-based Bitcoin mining firms. Marathon Digital Holdings (MARA) raised $300 million in convertible notes — part of those funds are meant to finance the company’s Bitcoin purchase. The company has since confirmed adding $249 million of Bitcoin to its balance sheet.

Riot Platforms (RIOT) also announced a $750 million equity offering. Core Scientific similarly secured $400 million in convertible notes for debt retirement and AI data center acquisitions. As Bernstein’s Gautam Chhugani wrote:

U.S. listed Bitcoin miners have a natural advantage vs. private unlisted miners. […] Whether miners pursue Bitcoin mining or AI data center growth, being able to raise debt/equity in the world’s deepest capital markets presents a natural advantage versus non-U.S. miners, particularly in a capital intensive industry, poised for market consolidation.

The report also highlighted how many Bitcoin mining companies are pivoting towards AI computing data centers while maintaining the original operations. The report notes that this grants the companies increased appeal among institutional investors who are more familiar with data center economics than cryptocurrency mining.

Featured image via Ideogram

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