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Bernstein Analysts Explain the “Real Reason” for Bitcoin’s Decline

BitcoinsistemiBitcoinsistemi2024/08/12 22:03
By:Mete Demiralp

Analysts from research firm Bernstein shared the main reason for the huge drop in Bitcoin price.

Kamala Harris’ surprising lead over Donald Trump in the presidential polls coincided with the recent drop in Bitcoin prices, according to a new report from Bernstein analysts.

While Harris has been leading Trump in several polls, including those on cryptocurrency-backed prediction platform Polymarket, Bitcoin has shown signs of weakening. Analysts at Bernstein suggest the correlation is no coincidence.

“Our interpretation of current market sentiment is that a Trump win is bullish, while a Harris win is bearish (at least in terms of immediate market reaction),” the report said.

Bitcoin has lost 3% of its value since Harris was nominated on Aug. 4. During that time, Bitcoin fell below $50,000 during a rapid market crash triggered by the unwinding of the yen carry trade. The largest cryptocurrency has yet to reclaim its all-time high of $73,700, which it reached in March.

“Rising Harris’ Polymarkets stake has rattled crypto markets, with Bitcoin remaining range-bound and unable to reclaim previous June highs of around $70,000,” Bernstein analysts wrote.

Related News There is a "Death Cross" Alarm in Bitcoin: Here's What to Expect

This year’s presidential election marks the first time cryptocurrencies have become a major issue on a major ballot. Trump’s pro-Bitcoin stance on the campaign trail, including his promise to establish a national Bitcoin treasury, support miners and even fire SEC Chairman Gary Gensler if he wins, has resonated with the crypto community. High-profile industry figures like Messari co-founder Ryan Selkis have expressed strong support for Trump.

At the 2024 Bitcoin Conference, Trump announced that his campaign had raised approximately $25 million from the crypto community.

*This is not investment advice.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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