Analysts: Don’t short BTC before Trump’s Bitcoin 2024 Conference – Why?

• Trump’s keynote at Bitcoin Conference 2024 may impact crypto regulations and market dynamics.
• Bernstein noted BTC’s recent gains and highlighted significant stocks and market positions.

As Donald Trump gears up to deliver the keynote address at the upcoming Bitcoin Conference 2024, a new analysis from Bernstein Research, led by Gautam Chhugani, highlighted a blind spot in the market. 

Bernstein’s analysis

According to Bernstein, Trump’s potential reelection might bring in significant regulatory shifts, which could dramatically influence Bitcoin [BTC] and the broader crypto market. 

Expanding on this, Bernstein pointed out that Bitcoin markets have recently regained momentum, with BTC surging by 13% last week to surpass $67,000.

Source: CoinGecko

Stocks related to cryptocurrencies experienced even greater gains, rising by 22% over the same period.

Bernstein’s report categorizes seven significant stocks into four groups: hybrid BTC/AI data centers (Core Scientific, Iris Energy), Bitcoin mining consolidators (Riot Platforms, CleanSpark, Marathon Digital Holdings), BTC corporate treasury (MicroStrategy), and crypto broking/exchange platforms (Robinhood).

“We view large Bitcoin mining consolidators as high-beta Bitcoin proxies, with price action being driven by underlying Bitcoin price and potential cashflows from operating leverage.” 

Furthermore, the hybrid BTC mining and AI data center operators were commended for their distinctive market positioning. 

“Bitcoin miners find themselves in a unique position, led by their disproportionate ‘power access’ in a power-constrained world.” 

Source: Bernstein

The report also discussed the possible effects of the upcoming U.S. elections and Trump’s crypto stance.

Trump and his influence on Bitcoin

Trump’s upcoming speech at the Bitcoin 2024 Conference in Nashville has sparked considerable interest, fueled by his recent advocacy for cryptocurrency and the eye-popping ticket price of $844,600—equivalent to 13 BTC.

Analysts are warning traders about the risks of shorting Bitcoin ahead of Trump’s speech, amid rumors that he might declare Bitcoin as a strategic reserve asset for the U.S.

This move that could significantly influence BTC’s value and market dynamics.

At the time of writing, Bitcoin was trading at $67,000, reflecting a downturn on daily charts as per CoinMarketCap.

However, with the Relative Strength Index (RSI) at 62, the market shows strong bullish sentiment, suggesting that the recent drop may merely be a short-term fluctuation.

Source: TradingView