bitcoin price rose for three consecutive days as investors bought the dip ahead of the Donald Trump-Kamala Harris debate and the closely watched US inflation report.
bitcoin (btc) rose to $55,700 while ethereum (eth) jumped to $2,320. The gains coincided with a positive performance in the stock market, where the Dow Jones, S&P 500 and Nasdaq 100 indexes all rose by more than 1%. These assets rebounded following the mixed jobs report, which showed the unemployment rate fell to 4.2%, while wage growth strengthened.
Bernstein is bullish on bitcoin
In a note ahead of the Trump-Harris debate, a Bernstein analyst predicted that bitcoin could rise to $90,000 if Trump wins in November. Such a move would represent a 62% increase from its Sept. 8 levels. The analyst also expects the coin to fall to a low of $30,000 if Harris wins.
Bernstein is a major player on Wall Street, as part of AllianceBernstein, a company with more than $700 billion in assets under management and a market capitalization of more than $3.8 billion.
The analyst believes Donald Trump will usher in a more crypto-friendly regulatory environment following the tenure of Gary Gensler, who has been criticized by many in the crypto industry for focusing on regulation through enforcement. During Gensler’s tenure, the SEC has sued companies such as Coinbase, Binance, Kraken, and OpenSea.
Trump has promised to fire Gensler and support the cryptocurrency industry. For example, he has stated that he will not allow the sale of bitcoins currently held by the government. He also intends to promote the United States as the leading bitcoin mining country.
However, history shows that bitcoin tends to perform well regardless of who is in the White House. It has reached all-time highs under every president since its creation. It reached an all-time high of $73,800 during Joe Biden's presidency and under Gary Gensler's watch.
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Federal Reserve rate cuts
Another potential catalyst for bitcoin is the actions of the Federal Reserve, particularly if this week’s data confirms that inflation is easing. Economists expect the figures to show that the overall consumer price index fell back to 2.6% in August.
If this is true, the Federal Reserve could implement a 0.50% rate cut at its September meeting. bitcoin and other risk assets tend to perform well when the central bank is cutting rates.
For bitcoin to reach $90,000, it will need to break above the 200-day exponential moving average, which sits at $60,000. It will also need to break above the descending trend line that connects the highest swing highs since March.