Bitcoin 'resilient to election outcome': Bernstein

Investing.com -- Bitcoin is expected to remain resilient regardless of the outcome of the upcoming U.S. presidential election, according to Bernstein analysts.

In a note Monday, Bernstein emphasized Bitcoin 's long-term growth potential and its immunity to short-term political shifts, driven by structural factors like U.S. fiscal policy, high debt levels, and demand for hard assets.

Bernstein noted, "Bitcoin remains the most resilient within crypto to election outcome," highlighting that the cryptocurrency's limited share of global financial assets leaves substantial room for growth, irrespective of who wins the election.

Bernstein's analysts explained that Bitcoin's stability stems from fundamental demand drivers.

"Bitcoin's primary drivers remain U.S. fiscal indiscipline, record debt levels and monetary expansion," they stated, suggesting that this environment increases appeal for assets like Bitcoin and gold.

Additionally, the strong adoption of Bitcoin ETFs—amassing over $23 billion in inflows year-to-date—is said to add to the upward momentum.

Bernstein set a price target of $200,000 for Bitcoin by 2025, unaffected by the election outcome.

In the short term, however, Bernstein says Bitcoin's price may see some volatility.

The firm suggested that a Trump win could push Bitcoin toward new highs of $80,000–$90,000 by Inauguration Day, as Trump is seen as more pro-crypto. Alternatively, they believe a Harris win might lead to an initial dip toward $50,000 before potential recovery.

"Trump is seen as the pro-crypto candidate," Bernstein remarked, noting the Democratic candidate's stance has been perceived as hawkish in recent years.

Furthermore, the firm feels that other cryptocurrencies, such as Ethereum and Solana , could experience different impacts based on regulatory expectations tied to the election.

Nonetheless, Bernstein sees Bitcoin's mining and stablecoin sectors maintaining strength under either administration, as bipartisan support for stablecoins could advance regulatory frameworks supportive of broader crypto adoption.

Source: Investing.com