🍎 🍕 Less apples, more pizza 🤔 Have you seen Buffett’s portfolio recently?Explore for Free

Bernstein: 'Welcome to the crypto bull market - Buy everything you can'

Published 2024-11-11, 07:46 a/m
© Reuters
RIOT
-
MSTR
-
MARA
-
BTC/USD
-
CLSK
-
HOOD
-
IREN
-
CORZ
-

Investing.com -- The crypto bull market is here, according to Bernstein, whose message to investors is clear, “Buy everything you can.”

Bernstein analysts on Monday (NASDAQ:MNDY) outlined their very bullish stance on the cryptocurrency sector, primarily due to a favorable regulatory environment expected 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 said in a note. “Aides in the Trump’s transition teams are explicitly pro-crypto,” they added.

Bitcoin's price soared past the $80,000 mark over the weekend, a rally that coincided with President-elect Trump's crypto-friendly policy announcements. Among these, the most notable for Bitcoin is the proposal to establish a national Bitcoin stockpile, which would involve the US government and its agencies holding and acquiring Bitcoin as part of a strategic reserve.

Although such a move would require legislation and might only come to fruition in 2025, Bernstein views this as a clear sign of Bitcoin's potential integration into national treasuries.

The investment said it “remains confident” in its 2025 Bitcoin price target of $200,000. “Even at $81K/Bitcoin, we believe risk-reward is favorable over next 12 months,” analysts noted.

The surge in Bitcoin also bodes well for publicly listed Bitcoin miners, who are now profiting with the cryptocurrency's price well above their average cash cost of production.

Despite lagging behind earlier in the year, Bernstein points out that companies like Riot Platforms (NASDAQ:RIOT) and CleanSpark (NASDAQ:CLSK) are now seen as potentially catching up, thanks to their sizable energy assets and positioning as top miners. Marathon Digital Holdings Inc (NASDAQ:MARA), holding a significant portion of its market cap in Bitcoin, is also highlighted despite its year-to-date decline.

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

Furthermore, Bernstein pointed to AI-focused Bitcoin miners, which offer investors exposure to both Bitcoin and artificial intelligence.

Iris Energy Ltd (NASDAQ:IREN), with its substantial capital expenditure plan, is poised to become a top five Bitcoin miner while earning a portion of its revenue from its GPU Cloud business. Meanwhile, Core Scientific Inc (NASDAQ:CORZ) is aiming to become a leading AI data center platform, with ongoing discussions to expand its client base and additional power sites to bolster its operations.

Other individual stocks that Chuggani and his team believe are poised to benefit from the crypto bull market include MicroStrategy Incorporated (NASDAQ:MSTR) and Robinhood (NASDAQ:HOOD).

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.