Crypto Bull Market Predictions

Investing.com — The crypto bull market is upon us, according to Bernstein, which has a clear message for investors: “Buy everything you can.”

On Monday, Bernstein analysts outlined their extremely bullish outlook on the cryptocurrency sector, primarily driven by an anticipated favorable regulatory environment under the administration of President-elect Donald Trump.

> “We expect a crypto-friendly regulatory environment under Trump, starting with a pro-crypto SEC,” analysts led by Gautam Chhugani stated. “Aides in Trump’s transition teams are explicitly pro-crypto.”

Bitcoin's price soared beyond $80,000 over the weekend, coinciding with Trump’s pro-crypto policy announcements, including a proposal to establish a national Bitcoin stockpile where the U.S. government would hold and acquire Bitcoin as a strategic reserve. Although this initiative would require legislation and may only manifest in 2025, Bernstein recognizes it as a significant indication of Bitcoin’s potential integration into national treasuries.

Bernstein maintains confidence in its 2025 Bitcoin price target of $200,000. “Even at $81K/Bitcoin, we believe the risk-reward ratio is favorable over the next 12 months,” the analysts noted.

The rise in Bitcoin prices also positively impacts publicly listed Bitcoin miners, currently enjoying profits with the cryptocurrency trading well above their average cash production costs. Bernstein highlights noteworthy companies such as Riot Platforms (NASDAQ:RIOT) and CleanSpark (NASDAQ:CLSK), which are expected to catch up due to their significant energy assets, as well as Marathon Digital Holdings Inc (NASDAQ:MARA)—Noted for holding a substantial portion of its market cap in Bitcoin despite year-to-date declines.

> “We believe the pure-play miners will be the catch-up trade from here,” analysts commented.

Additionally, Bernstein identified AI-focused Bitcoin miners, providing investors exposure to both Bitcoin and artificial intelligence. Iris Energy Ltd (NASDAQ:IREN), with an extensive capital expenditure plan, is set to become a top five Bitcoin miner while earning a portion of its revenue through its GPU Cloud business. Meanwhile, Core Scientific Inc (NASDAQ:CORZ) aims to develop into a leading AI data center platform and is in discussions to broaden its client base and expand its operational power sites.

Notably, Bernstein also considers MicroStrategy Incorporated (NASDAQ:MSTR) and Robinhood (NASDAQ:HOOD) as individual stocks likely to benefit from the arising crypto bull market.