Investing Recommendation from Bernstein Analysts

Bernstein analysts urged investors to buy Bitcoin, citing a favorable shift in the regulatory environment that could significantly boost cryptocurrencies.

Key Highlights

The analysts released a note early Wednesday after Donald Trump's victory in the U.S. presidential race. With a likely Republican-controlled Senate, long-standing regulatory hurdles could turn into advantages, potentially leading to substantial market growth.

> "The market is nowhere close to factoring in this shift," noted Bernstein analysts, emphasizing the possibility of accelerated regulatory clarity in the crypto sector.

Recent Market Performance

The impact of this regulatory shift was already manifesting: Bitcoin hit an all-time high of over $74,000, with Ethereum increasing 8% to $2,600 and Solana rising 16% to $160.

The firm recommends taking advantage of potential dips to buy into Bitcoin strength, highlighting several areas where regulatory progress is anticipated, such as:
– Clearer definitions for digital assets
– Applicability of broker/dealer laws to exchanges and DeFi platforms
– Quicker approvals for crypto-based ETFs

Bernstein expressed optimism for bipartisan support in crypto rule-making and specifically highlighted ongoing work on a stablecoin bill and a market structure bill aimed at providing clarity for crypto exchanges and broker-dealers.

Investment Opportunities

Bernstein maintains a bullish outlook on Bitcoin miners like Riot Platforms (NASDAQ:RIOT), CleanSpark (NASDAQ:CLSK), Core Scientific (CORZ), and Iris Energy (IREN) as high-beta trades correlated with Bitcoin's trends. They also suggest MicroStrategy (MSTR), given its extensive Bitcoin treasury, and Robinhood (NASDAQ:HOOD) to capture rising retail interest in crypto.

The firm continues to stand by its $200,000 price target for Bitcoin by 2025, viewing the current trend as the beginning of a new Bitcoin bull cycle.