Investing.com -- Bernstein analysts urged investors in a note Thursday to buy Bitcoin as a favorable shift in the regulatory environment could provide a major boost to crypto.
The note, released early on Wednesday, states that with Donald Trump having won the U.S. presidential race and a likely GOP-controlled Senate, the long-standing regulatory headwinds for crypto could turn into "a tailwind," potentially unlocking significant growth in the market.
"The market is nowhere close to factoring in this shift," Bernstein analysts state, highlighting the potential for accelerated regulatory clarity in the crypto space.
They believe the impact of the shift was already evident, with Bitcoin recently breaking all-time highs, reaching over $74,000. The broader crypto market reacted positively, with Ethereum up 8% to $2,600 and Solana surging 16% to $160.
Bernstein expects this trend to continue, stating, "We recommend buying the Bitcoin strength here," and suggests taking advantage of potential marginal dips as an enhanced buying opportunity.
Bernstein identifies several areas of anticipated regulatory progress, including clearer definitions for digital assets, broker/dealer law applicability to exchanges and DeFi platforms, and accelerated approvals for crypto-based ETFs.
"We expect bipartisan support for crypto rule-making on an accelerated time schedule," they note, with a specific focus on a stablecoin bill and a market structure bill to provide clarity for crypto exchanges and broker-dealers.
Looking forward, Bernstein is bullish on Bitcoin miners such as Riot Platforms (NASDAQ:RIOT), CleanSpark (NASDAQ:CLSK), Core Scientific (CORZ), and Iris Energy (IREN) as high-beta trades to Bitcoin.
The firm also recommends MicroStrategy (MSTR) due to its extensive Bitcoin treasury program and Robinhood (NASDAQ:HOOD) as a top play to capture surging retail crypto interest.
With Bitcoin currently on a strong upward trajectory, Bernstein remains committed to its $200,000 price target for 2025, seeing this as the start of a "new Bitcoin bull cycle."