Key Points
The price of Bitcoin (BTC) has been on an upward trajectory for three days. This increase happened as investors purchased more Bitcoin in anticipation of the debate between Donald Trump and Kamala Harris, as well as the U.S. inflation report.
In this period, Bitcoin (BTC) reached a high of $55,700. At the same time, Ethereum (ETH) surged to $2,320. These increases coincided with a positive performance in the stock market. The Dow Jones, S&P 500, and Nasdaq 100 indices all rose by over 1%.
Bernstein’s Bitcoin Prediction
Ahead of the Trump and Harris debate, an analyst from Bernstein made a prediction. He suggested that Bitcoin could rise to $90,000 if Trump wins the election in November. This would be a 62% increase from its levels on September 8. However, if Harris wins, the analyst expects Bitcoin to drop to $30,000.
Bernstein is a significant entity on Wall Street. It’s a part of AllianceBernstein, a company with over $700 billion in assets under management. It also boasts a market cap of over $3.8 billion.
The analyst’s prediction is based on the belief that Trump will foster a more crypto-friendly regulatory environment. This would be a change from Gary Gensler’s tenure, which has been criticized for its focus on regulation through enforcement. Under Gensler, the SEC has sued companies like Coinbase, Binance, Kraken, and OpenSea.
Trump has promised to support the crypto industry. He has stated that he will not allow the sale of Bitcoins currently held by the government. He also plans to promote the U.S. as the leading Bitcoin mining country.
However, Bitcoin’s performance has been strong regardless of who is in the White House. It has reached all-time highs under every president since its inception. It even peaked at a record high of $73,800 during Joe Biden’s presidency and under Gary Gensler’s oversight.
The Federal Reserve’s actions could also be a catalyst for Bitcoin. This is especially true if this week’s data confirms that inflation is easing. Economists expect the numbers to show that the headline Consumer Price Index retreated to 2.6% in August. If this is accurate, the Fed may implement a 0.50% rate cut at its September meeting.
For Bitcoin to reach the predicted $90,000, it will need to surpass the 200-day Exponential Moving Average at $60,000. It will also need to rise above the descending trendline that connects the highest swings since March.