According to analysts at Bernstein, the crypto community is still waiting for more clarity and follow-through from Kamala Harris on her crypto policies. They suggest that crypto sentiment would be stronger with a Trump victory. Additionally, analysts have highlighted five major reasons behind the recent surge in Bitcoin’s price.
Kamala Harris’ Remarks Spark Bitcoin Rally
As noted on Deythere, Bitcoin saw a 10% increase last week, while Ethereum gained 17%. Analysts from research firm Bernstein outlined five main drivers of this rally, along with future outlooks. One of the factors is a speech by Democratic candidate Kamala Harris, who, at a recent Wall Street fundraiser, pledged to promote crypto trading while protecting consumers. This bipartisan potential for crypto support has eased some concerns within the community. Analysts Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia noted:
“This is Harris’ first clear statement involving ‘digital assets,’ contrasting with Trump’s specific policy promises. Nevertheless, the crypto community is somewhat reassured by signals of support from both candidates.”
“Crypto Sentiment Would Be Stronger with a Trump Victory”
Despite Harris’ statement, Elizabeth Warren’s “anti-crypto army” messages and the ongoing SEC cases against crypto companies have caused uncertainty. Analysts believe that the crypto community seeks more policy clarity from Harris. The analysts added:
“We continue to believe that crypto sentiment would be stronger with a Trump victory, as it signals a fresh policy start and broader regulatory support for Bitcoin, DeFi, and NFTs.”
ETF Flows and Easing Monetary Policy
Regardless of the election outcome, analysts expect the momentum for major crypto assets to continue, driven by Bitcoin and Ethereum ETFs. Spot Bitcoin ETFs have remained net positive, with $397.2 million in net inflows last week, bringing total inflows to $17.7 billion. Analysts believe that new approvals will continue, and after a waiting period for advisor demand, they expect inflows to accelerate.
Fed Rate Cut Fuels Bitcoin Surge
Another factor driving Bitcoin’s rise was the Federal Reserve’s surprise 50-basis-point rate cut. According to Chhugani, Sapra, and Chindalia, Bitcoin is reacting to looser monetary policies and a weaker U.S. dollar, which is favorable for Bitcoin. The analysts highlighted:
“The U.S. national debt has now reached ~$35 trillion. Bitcoin is seen as an alternative, non-sovereign asset that holds relative value, similar to gold, especially if the government continues fiscal excesses.”
Bitcoin Mining Stability and Halving Impact
The final key factor is the recovery in Bitcoin mining after the April halving event. Surviving miners have stabilized the network’s hash power, which has returned to pre-halving levels, with record highs seen earlier this month. The reduction in major BTC sales, following government liquidations and Mt. Gox fund distributions, has also helped alleviate market fears.
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