Bernstein Sees “Trump Factor” as Boon for Bitcoin Miners

Bitcoin miners are experiencing a Goldilocks scenario amid the “Trump factor.” This is according to The Block, citing analysts from Bernstein.

Gautam Chhugani and Mahika Sapra suggest that under current conditions, the valuations of companies in the sector will rise, making their stocks a buy.

“The Goldilocks scenario for mining is becoming increasingly realistic: there is a greater chance of favourable political changes, the US is becoming a dominant hub for bitcoin mining and next-generation chips, the industry is gaining recognition as an energy interconnector, and is becoming a reliable partner for AI data centres,” the experts emphasized.

The price of the leading cryptocurrency has recovered to levels near $63,000 following an unsuccessful attempt on the life of Donald Trump, the Republican Party’s presidential candidate.

According to the decentralized platform Polymarket, his chances of winning the election have surged to 71% compared to 60% at the time of the incident. The current head of state, Joe Biden, stands at 18%.

Analysts noted that the market interprets Trump’s potential return to the presidency as a “more positive” factor for the crypto industry, given the stringent existing regulations. In recent months, the politician has repeatedly expressed support for digital assets and promised to aid mining.

“The price of bitcoin positively correlates with the likelihood of a Trump presidency and will remain sensitive to election news,” the analysts stated.

In their view, additional favourable factors for US miners include broad access to electricity and the opportunity to diversify into the AI sector. They also pointed to advancements in cryptocurrency mining technology in the country, as Jack Dorsey’s Block has already secured a deal to supply Core Scientific with its new 3-nm chips.

Chhugani and Sapra also reaffirmed their forecast for bitcoin’s price to reach $200,000 by the end of 2025, with growth to $1 million over the subsequent eight years.

In June, bitcoin miners were unable to restore the production of digital gold, according to ForkLog’s monthly digest.