Did you say bull run? According to various analyzes from several specialists and despite clearly misleading appearances, we are therefore in bull run ! Notwithstanding the recent bloodbath on altcoins and the drop of more than 10% in Bitcoin, observers are unanimous: we are still in the bullish phase and we must be patient. But until when ? And why ? So many questions that Bernstein experts are trying to answer with crypto ETFs in their sights, but also and above all the American elections which are looming on the horizon. We take stock of all this together.
The reasons for the current bear market according to Bernstein experts
“After months of euphoria around spot Bitcoin ETFs, the market is suddenly feeling bearish. »
Gautam Chhugani et Mahika Sapra, experts chez Berstein – Source : The Block
This is how the specialists of Bernstein summarize the general feeling who inhabits the cryptosphere, and for them, several reasons for this and first of all these famous ETF Bitcoin. With more than $14 billion in net inflows since January, these exchange-traded funds are currently on a six-day streak of daily net outflows of more than 100 million for a total of $1 billion. And it could last:
“There may be a pause before large private banking platforms whitelist Bitcoin ETFs. This is the real game changer for portfolio allocations in favor of Bitcoin, beyond simple basic trading. We expect these approvals to be granted in the third or fourth quarter and until then, markets are expected to be flat. »
Gautam Chhugani et Mahika Sapra, experts chez Berstein – Source : The Block
Indeed, currently, Bitcoin ETFs only represent 0.1 to 0.2% general allocations of portfolios of wealth advisors and they should reach 2 to 3% in the long term. So there is still plenty of room for improvement!
Crypto could be “the goodwill” of President Trump if elected
The other argument also concerns ETFs, but on Ethereum this time. The imminent launch of these new financial products indexed to the second crypto on the market is expected as a disappointment by specialists and in this, Bernstein is on the same wavelength as JPMorgan. However, past this first stage, these ETH ETFs could ultimately succeed in establishing themselves in the financial landscape thanks to the intrinsic promises of Ethereum which are the tokenisation and payments in stablecoins according to our two experts of the day. But another event that has nothing to do with the market could ultimately change everything and that is the result of the American presidential elections:
“So ETH ETF volumes may well be low initially, but if voting sentiment becomes more Republican, crypto will end up being the main “Trump stock in trade” and hopes for a favorable regulatory regime will change the narrative use cases around blockchains such as Ethereum. »
Gautam Chhugani et Mahika Sapra, experts chez Berstein – Source : The Block
The crypto market will have to wait for the possible victory of Donald Trump to get back on track? Not so simple, they explain Gautam Chhugani et Magic Sapra from Berstein for whom it is a set of factors which will influence the markets, before concluding positively with the following formula:
« We believe the new crypto bull cycle is a multi-year opportunity and near-term weakness may be another opportunity to find attractive entry levels.
Gautam Chhugani et Mahika Sapra, experts chez Berstein – Source : The Block
A rational and elegant way of advising their readers « buy the dip » worthy of the biggest influencers! Because as a reminder, these are the same experts who predicted last week that bitcoin would reach 90,000 dollars at the end of the year, 150,000 at the end of the cycle and 1 million in 2030. So whether it is Trump or Biden, the future tenant of the White House, the question is not; is the bull run will leave, but when.
