Bitcoin Bull Market Potential

As Bitcoin again attempts to break out of the $70,000 resistance level toward all-time highs, analysts at research and brokerage firm Bernstein reported that Bitcoin exchange-traded fund inflows, crypto equity markets, and retail trading sentiment are “screaming risk-on.”

With Bitcoin and other risk-on assets rallying, analysts noted that rising odds for the pro-crypto Donald Trump to win the U.S. presidential election, alongside positive crypto policy statements from rival Kamala Harris, have made the market less worried about downside risks.

Presidential Odds and Regulatory Support

According to decentralized predictions platform Polymarket, Republican candidate Donald Trump has a 61.1% chance of winning against Democrat Kamala Harris at 38.6% in the election on November 5. Last week, Vice President Harris expressed support for a crypto regulatory framework aimed at helping build wealth for Black men.

Spot ETF Inflows

U.S. spot Bitcoin ETFs are seeing strong net inflows, registering $2.1 billion last week—the largest since mid-March, when Bitcoin was nearing its all-time high of approximately $74,000. Cumulative net inflows since the funds began trading in January have reached nearly $21 billion, with record assets under management over $66 billion.

Gautam Chhugani noted that these ETF inflows are increasingly driving Bitcoin spot demand as asset managers focus on distribution to wealth advisors.

Bitcoin Performance

Currently, Bitcoin trades at $68,334, reflecting a 5.4% increase over the past week. Crypto-related equities are outperforming Bitcoin, especially pure-play miners, as their infrastructure costs and energization rates lead to faster returns than AI diversifiers.

Chhugani also cited that Robinhood’s crypto trading revenues are up 160% year-over-year, indicating strong bullish retail sentiment. Meanwhile, MicroStrategy is outperforming with a 49% return this month, serving as a leading indicator for Bitcoin.

Memecoins and AI Intersection

Memecoins are regaining traction among retail investors, with the category’s market cap tripling to around $66 billion in six months. Murad Mahmudov’s discussions on “memecoin supercycles” have reignited enthusiasm for this niche.

Chhugani remarked that ordinary investors are attracted to memes for their relatability, fueling memetic growth in tokens. Interestingly, the interaction of crypto and AI has emerged, exemplified by an AI-trained bot promoting the Solana-based memecoin Goatseus Maximus (GOAT), which saw its market cap increase to $300 million.

Despite excitement, questions arose about the authenticity of the AI agent behind @truth_terminal, as spelling errors brought scrutiny regarding its operation.

Conclusion

Chhugani maintains long positions in various cryptocurrencies, noting potential future behaviors as crypto provides financial APIs for AI agents navigating the evolving economic landscape. Bernstein may receive compensation for investment banking services from MicroStrategy, and some affiliates act as market makers for related securities.