Bernstein Analysts Predicts When The Bitcoin Price Will Turn Bullish Again

Bernstein
analysts

Gautam
Chhugani,
Mahika
Sapra,
and
Sanskar
Chindalia
have
provided
insights
into
when
Bitcoin’s
price
could
turn
bullish
again
and
record
new
highs.
The
analysts
also
alluded
to
the
impact
that

former
US
president
Donald
Trump

could
have
on
Bitcoin’s
trajectory. 

When
Bitcoin
Price
Will
Turn
Bullish
Again

Bernstein
analysts
mentioned
in
a
research
note
on
August
5
that
they
expect
Bitcoin
and
the
broader
crypto
market
to
recover
if
the
equity
markets
recover
due
to
a
response
from
the

Federal
Reserve.
They
expect
this
response
to
come
in
the
form
of
a

rate
cut

and
injection
of
more
liquidity
into
the
economy. 

These
analysts
mentioned
that
the
recent
crash
in
the
crypto
market
wasn’t
Bitcoin’s
fault
this
time,
but
it
was
large
due
to
the
“fears
in
equity
markets”
and
other
macroeconomic
factors.
The
US
stock
market
is
currently
facing
a
massive
decline
amid
fears
that
the
US
economy
might
enter
a
recession. 

Due
to
its

historical
correlation

with
these
equities,
Bitcoin
also
experienced
a
wave
of
massive
sell-offs,
which
began
during
the
weekend.
This
caused
the
flagship
crypto
to

drop
below
$50,000

for
the
first
time
since
February
earlier
this
year.
The
broader
crypto
market
followed
suit
as
altcoins
experienced
massive
price
declines. 

Chhugani,
Sapra,
and
Chindalia
predict
that
the
macro
side
will
continue
to
impact
Bitcoin
and
the
crypto
market
for
most
of
this
third
quarter.
There
have
been

speculations

that
the
Fed
might
cut
interest
rates
at
its
next

FOMC
meeting

in
September,
which
will
undoubtedly
be
positive
for
risk
assets,
including
cryptocurrencies.

Interestingly,
market
experts
like
prominent
economist
Jeremy
Siegel
have

called

for
an
emergency
rate
cut
in
addition
to
the
projected
rate
cut
that
could
happen
in
September.
However,
whether
the
Fed
will
succumb
to
such
pressures
remains
to
be
seen,
especially
as
they
do
not
seem
convinced
that
the
US
is
close
to
a
recession. 

The
US
election
is
another
factor
that
these
analysts
expect
to
impact
BTC
and
the
broader
crypto
market.
They
stated
that
Bitcoin
“remains
a
‘Trump
trade’”
and
expect
these
crypto
assets
to
continue
to
be
range-bound
until
after
the
election.
Bitcoin
is
expected
to
react
positively
if
Trump
eventually
wins
as
he
is
considered
more
crypto-friendly
than
Democratic
presidential
candidate

Kamala
Harris. 

BTC’s
Outlook
Is
Still
Bullish

Despite
the
recent
decline,
these

Bernstein
analysts

remain
bullish
on
Bitcoin
in
the
long
term,
noting
that
there
are
no
“incremental
negatives
for
crypto”
at
the
moment.
They
alluded
to
BTC’s
institutional
adoption
trend
through
the

Spot
Bitcoin
ETFs,
which
provides
a
bullish
outlook
as
more
institutional
investors
continue
to
adopt
the
flagship
crypto. 

These
analysts
expect
more
“wirehouse
approvals

into
Q3
and
Q4,
thus
providing
further
on-ramps
for
asset
allocation
to
Bitcoin.”
Powerhouse

Morgan
Stanley

has

reportedly

told
its
financial
advisors
they
can
begin
offering
these
Spot
Bitcoin
ETFs
to
their
wealthy
clients
starting
August
7. 

Featured
image
from
PCMag,
chart
from
TradingView.com