Analysts: Why Not Short BTC Until Trump’s Bitcoin Conference in 2024?
Journalist
- Trump’s keynote speech at the 2024 Bitcoin Conference could have implications for crypto regulations and market dynamics.
- Bernstein highlighted BTC’s recent gains, as well as key stocks and market positions.
A new analysis from Bernstein Research led by Gautam Chugani reveals a blind spot in the market as Donald Trump prepares to deliver his keynote speech at the upcoming Bitcoin Conference.
Trump’s Influence on Bitcoin
Bernstein: Bitcoin could be affected by Trump’s potential re-election as he may bring about significant regulatory changes. [BTC] The broader crypto market.
Bernstein highlighted that Bitcoin markets have been gaining momentum recently. BTC rose 13% last week, surpassing $67,000.
Source: CoinGecko
Cryptocurrency-related stocks saw an even bigger gain, up 22% over the same period.
Bernstein’s report breaks seven stocks down into four categories: BTC corporate treasury (MicroStrategy), BTC mining consolidators (Riot Platforms), CleanSpark (Marathon Digital Holdings), BTC broker/exchange platforms/Robinhood.
We view large Bitcoin mining consolidations as a high-beta Bitcoin proxy, with price action driven by underlying Bitcoin prices and potential cash flows from operating leverage.
The hybrid BTC and AI data centers were also praised for their unique market positioning.
“Bitcoin miners are in a unique situation, primarily due to their disproportionate access to power in a world of limited power.”
Source: Bernstein
The report also discussed potential impacts of the upcoming US elections and Trump’s stance on cryptocurrency.
Trump’s Impact on Bitcoin
Trump’s speech at the Bitcoin 2024 conference, which will be held in Nashville, has generated significant interest. This is due to his recent endorsement of the cryptocurrency as well as the ticket price, which is $844,600 or 13 BTC.
Analysts warn traders against shorting Bitcoin ahead of Trump’s speech as rumors emerge that he may declare Bitcoin a strategic reserve for the US
This move could have a significant impact on BTC’s market cap and momentum.
According to CoinMarketCap, the price of Bitcoin was at $67,000 at the time of writing, reflecting a decline on the daily charts.
The Relative Strength Index of 62 indicates a strong bullish market sentiment. This suggests that the recent decline could be a temporary fluctuation.
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