Markets
Analysts: Don’t Short BTC Ahead of Trump’s Bitcoin 2024 Conference. Why?
- Trump’s keynote speech at the Bitcoin Conference 2024 could impact cryptocurrency regulation and market dynamics.
- Bernstein highlighted BTC’s recent gains and highlighted significant market actions and positions.
As Donald Trump prepares to deliver his keynote speech at the next bitcoin conference 2024A new analysis from Bernstein Research, led by Gautam Chhugani, has highlighted a blind spot in the market.
Bernstein’s analysis
According to Bernstein, Trump’s potential re-election could lead to significant regulatory changes, which could significantly impact Bitcoin [BTC] and the cryptocurrency market more broadly.
Elaborating on this topic, Bernstein pointed out that Bitcoin markets have recently regained momentum, with BTC rising 13% last week, surpassing $67,000.
Source: CoinGecko
Cryptocurrency-related stocks saw even bigger gains, rising 22% over the same period.
Bernstein’s report categorizes seven significant stocks into four groups: BTC/AI hybrid data centers (Core Scientific, Iris Energy), Bitcoin mining consolidators (Riot Platforms, CleanSpark, Marathon Digital Holdings), BTC corporate treasuries (MicroStrategy), and cryptocurrency brokerage/exchange platforms (Robinhood).
“We view large Bitcoin mining consolidators as high-beta Bitcoin proxies, with price action driven by the underlying price of Bitcoin and potential cash flows from operating leverage.”
Additionally, hybrid BTC mining and AI data center operators have been praised for their distinctive market positioning.
“Bitcoin miners are in a unique position, driven by their disproportionate ‘access to power’ in a power-constrained world.”
Source: Bernstein
The report also looked at the possible effects of the upcoming US elections and Trump’s stance on cryptocurrencies.
Trump and his influence on Bitcoin
Trump’s upcoming speech at the Bitcoin 2024 conference in Nashville has attracted considerable interest, fueled by his recent support for cryptocurrencies and the sky-high ticket price of $844,600, equivalent to 13 BTC.
Analysts warn traders of risks of shorting Bitcoin ahead of Trump speech, amid speculation he may declare Bitcoin a strategic reserve asset for the U.S.
This move could significantly impact the value of BTC and market dynamics.
At the time of writing, Bitcoin was trading at $67,000, reflecting a decline on the daily charts as per CoinMarketCap.
However, with the Relative Strength Index (RSI) at 62, the market is showing strong bullish sentiment, suggesting that the recent decline may simply be a short-term fluctuation.
Source: TradingView