Markets
Kamala Harris’ Olive Branch for Crypto Is ‘A Little Overdue,’ Says Bernstein
A new report from Bernstein Research highlights the growing importance of cryptocurrencies in the 2024 US presidential election and concludes that Kamala Harris’s olive branch may be “a little late.”
According to the report, Kamala Harris’s campaign is trying to restore relationships with cryptocurrency companies, having contacted major companies in the sector. Any reset would follow a years-long history From regulatory Actions against the cryptocurrency industry under the current administration.
Bernstein cites Democratic communications that “20% of voters in key swing states identified cryptocurrencies as an important issue in the 2024 election.”
The report also notes that “cryptocurrency holders exceed 50 [million] in the United States now, enough material to impact the election in a close contest.”
However, Bernstein analysts believe this initiative may be “a little late,” saying that “the industry will seek more concrete action (reversing past mistakes) before warming up to the Democratic campaign.”
The report also highlights the growing influence of cryptocurrency-focused political action committees. It notes that Fairshake, a cryptocurrency Super PAC backed by Coinbase, Ripple, and others, has raised more than $200 million to support pro-crypto candidates.
In terms of market impact, Bernstein suggests that “crypto markets will trade in a completely top-down fashion based on political developments leading up to the election results in early November.”
Regardless of whether voters choose Donald Trump or presumptive Democratic nominee Kamala Harris, Bernstein said he believes cryptocurrency markets will trade “completely top-down based on political developments until the election results in early November.”
Analysts added that any “Trump trade” in the US election should include a higher allocation to Bitcoin and Bitcoin-related stocks, as Bitcoin miners in particular are well-positioned because their revenues are directly linked to Bitcoin prices. Trump also signaled clear support As for Bitcoin mining as an industry, Bernstein continues to expect major U.S. miners to consolidate global market share.
“We expect the top 5 Bitcoin miners to account for 25% of the global Bitcoin network hashrate by 2025,” the report says.
Bernstein rated Riot Platforms (RIOT), CleanSpark (CLSK), Iris Energy (IREN), and Core Scientific (CORZ) as Outperform. The analysts said they also rated Microstrategy (MSTR), which holds 1.1% of the world’s Bitcoin as corporate treasury assets, as Outperform.
By Stacy Elliott.