Investing.com -- The crypto bull market is here, according to Bernstein, whose message to investors is clear, “Buy everything you can.”
Bernstein analysts on Monday (NASDAQ:MNDY) outlined their very bullish stance on the cryptocurrency sector, primarily due to a favorable regulatory environment expected under the administration of President-elect Donald Trump.
“We expect a crypto-friendly regulatory environment under Trump, starting with a pro-crypto SEC,” analysts led by Gautam Chhugani said in a note. “Aides in the Trump’s transition teams are explicitly pro-crypto,” they added.
Bitcoin's price soared past the $80,000 mark over the weekend, a rally that coincided with President-elect Trump's crypto-friendly policy announcements. Among these, the most notable for Bitcoin is the proposal to establish a national Bitcoin stockpile, which would involve the US government and its agencies holding and acquiring Bitcoin as part of a strategic reserve.
Although such a move would require legislation and might only come to fruition in 2025, Bernstein views this as a clear sign of Bitcoin's potential integration into national treasuries.
The investment said it “remains confident” in its 2025 Bitcoin price target of $200,000. “Even at $81K/Bitcoin, we believe risk-reward is favorable over next 12 months,” analysts noted.
The surge in Bitcoin also bodes well for publicly listed Bitcoin miners, who are now profiting with the cryptocurrency's price well above their average cash cost of production.
Despite lagging behind earlier in the year, Bernstein points out that companies like Riot Platforms (NASDAQ:RIOT) and CleanSpark (NASDAQ:CLSK) are now seen as potentially catching up, thanks to their sizable energy assets and positioning as top miners. Marathon Digital Holdings Inc (NASDAQ:MARA), holding a significant portion of its market cap in Bitcoin, is also highlighted despite its year-to-date decline.
“We believe, the pure-play miners will be the catch-up trade from here,” analysts said.
Furthermore, Bernstein pointed to AI-focused Bitcoin miners, which offer investors exposure to both Bitcoin and artificial intelligence.
Iris Energy Ltd (NASDAQ:IREN), with its substantial capital expenditure plan, is poised to become a top five Bitcoin miner while earning a portion of its revenue from its GPU Cloud business. Meanwhile, Core Scientific Inc (NASDAQ:CORZ) is aiming to become a leading AI data center platform, with ongoing discussions to expand its client base and additional power sites to bolster its operations.
Other individual stocks that Chuggani and his team believe are poised to benefit from the crypto bull market include MicroStrategy Incorporated (NASDAQ:MSTR) and Robinhood (NASDAQ:HOOD).