Major cryptocurrencies experienced a slight uptick before Monday's opening bell, as Bernstein analysts predict divergent short-term effects on crypto sentiment depending on the outcomes of Tuesday's US presidential election. Bitcoin (BTC) rose over 0.4%, trading around $68,743, while Ethereum (ETH) saw a gain of roughly 0.3%, trading at $2,520.
The total global crypto market capitalization increased by 0.2%, reaching $2.29 trillion. The CoinDesk Market Index recorded a rise of approximately 0.7% within the past 24 hours. Bernstein analysts characterized former President Donald Trump as "the pro-crypto candidate" in their Monday client note.
Meanwhile, they highlighted that Vice President Kamala Harris, the Democratic nominee, has made attempts to engage with the crypto space but is still perceived as aligning with her party's ongoing stringent stance on cryptocurrency regulations. The analysts stated, "We expect bitcoin to break to all-time highs on a Trump win, potentially reaching between $80K and $90K in the following weeks." They further mentioned that a Harris victory may not be fully accounted for in the short term, hinting at a possibility for bitcoin to test the $50K support level before any recovery can occur. In addition, the Federal Open Market Committee meeting of the central bank is scheduled to commence on Wednesday, with an interest rate decision expected on Thursday.
Market expectations, as gauged by the CME FedWatch tool, indicate a likely cut of 25 basis points. On Tuesday, the S&P Global Composite Purchasing Managers Index for October, alongside the ISM services index data for the same month, is scheduled for release. Furthermore, Thursday will see the unveiling of the weekly jobless claims data, while the preliminary University of Michigan Consumer Sentiment Index for November will be published on Friday..