Bitcoin rallied above $93,000 Wednesday as the world's largest cryptocurrency continues to notch record highs in the wake of the Nov. 5 elections. President-elect Donald Trump was pro-crytpo during his campaign and is expected to offer a friendly regulatory regime for digital assets. That should provide a tailwind for bitcoin ETFs and related stocks such as Coinbase Global and Robinhood Markets. Meanwhile, Bernstein analysts recommend diving into the crypto industry.
Bitcoin jumped to another all-time high of $93,445 Wednesday, marking a nearly 34% rally from Election Day, according to CoinDesk data. Bitcoin fell near $89,000 by the afternoon.
Meanwhile, Bernstein analysts in a Monday note reported by The Block urged investors to add crypto industry exposure "as soon as possible."
Time To Invest, With Caution
"Don't fight this," wrote analysts led by Gautam Chhugani. "Welcome to the crypto bull market — buy everything you can." The analysts told investors that had refrained from crypto due to regulatory concerns to "invert their mental modal" after the U.S. election results. Bernstein noted there should be a friendlier crypto regulatory environment under Trump, including a new Securities and Exchange Commission Chair.
Trump on the campaign trail vowed to fire SEC Chair Gary Gensler in favor of a pro-crypto appointee and start a national bitcoin reserve. At the same crypto conference in July, Trump pledged to make the U.S. the "crypto capital of the planet and the bitcoin (BTC-USD) superpower of the world."
Bernstein added that it remains "confident" in its $200,000 bitcoin price target by the end of 2025. Even as bitcoin pushes to record highs, "we believe risk-reward is favorable over (the) next 12 months," the analysts wrote.
Other cryptocurrency analysts have pegged $100,000 as the next big bitcoin price target, perhaps by year-end. That target is now within reach.
However, new investors to the digital asset space should remain cautious about bad actors, wrote Anthony Yeung, global head of strategic development at crypto security firm CoinCover.
"Bitcoin's volatility makes it attractive to new investors, but people should take the time to educate themselves around the risks of any bull market," Yeung wrote. "One of the most important trends that investors should be aware of is the correlation between new market entrants and the rise in malicious activity... With bitcoin expected to rise even further this week, new investors should be particularly wary of these threats."
Bitcoin-Fueled Rally
Elsewhere, spot bitcoin ETFs generated $1.93 billion in inflows through Tuesday, led by $1.53 billion from BlackRock's iShares Bitcoin Trust ETF, Farside Investors data shows.
Elsewhere, spot bitcoin ETFs generated $1.63 billion in inflows during election week last week, offset by a total of $657.9 million in outflows on Monday and Tuesday. Thes iShares Bitcoin Trust ETF was the week's clear leader with a total of $1.25 billion in inflows.
So far, the spot bitcoin ETFs have amassed a total of $27.72 billion in inflows since their January launch, offset by $20.1 billion in outflows from the Grayscale Bitcoin Trust. IBIT has led the group at $28.92 billion in inflows. The Fidelity Wise Origin BTC ETF ranks second at $10.93 billion in inflows.
IBIT and the spot bitcoin ETFs rose premarket Tuesday, adding to their 13% jump Monday. Shares of the group are all trading at or near record highs, with many extended from buy zones for their individual consolidations. IBIT and the other ETFs have rallied about 30.5% so far this year.
Coinbase stock fell 10.8% Wednesday and pared gains Tuesday, after leaping about 20% Monday. Shares of the crypto exchange last week erupted for a 48% weekly gain to 270.74, just below a multiyear high.
Coinbase broke out above a 283.48 buy point for a 32-week consolidation on the move. COIN stock vaulted about 64% this year.
Robinhood, a crypto-friendly trading app, last week soared 27.4% to 30.54, the highest in nearly three years. HOOD stock surged another 7.4% Monday, but fell Wednesday.
Bitcoin miners rallied on Monday to extend their gains from last week. The stocks were mixed Tuesday and Wednesday amid earnings reports.
Bit Digital soared 26.3% Monday, clearing a 4.37 buy point, following a 20.5% rally last week. MARA Holdings popped 30% Monday, to rebound above its 200-day line. Shares pared gains Wednesday on earnings. MARA stock advanced 19.5% last week. Hut 8 swung 32% higher to start the week after a 22.3% gain for election week.
Bitcoin's new highs on Monday surpassed the prior March 14 record of $73,798. Bitcoin has rallied about 111% so far this year.
Ethereum slid near $3,140 Wednesday. ETH traded as high as $3,441 Monday, clearing its Oct. 20 high near $2,750. Ethereum leaped about 37% in 2024 and reached a 52-week high of $4,090 in March. The No. 2 crypto is still well below its November 2021 peak above $4,800.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
