Bernstein Analysts Unveil the True Cause Behind Bitcoins Downturn

Bernstein analysts have identified the main reason behind the recent decline in Bitcoin prices, attributing it to Kamala Harris’ lead over Donald Trump in the presidential polls. According to the analysts, the correlation between Harris’ rise in popularity and Bitcoin’s weakening is not a coincidence. They believe that a Trump win is seen as bullish for the market, while a Harris win is viewed as bearish. Since Harris’ nomination on August 4th, Bitcoin has lost 3% of its value, falling below $50,000 during a market crash triggered by the unwinding of the yen carry trade. The cryptocurrency has yet to recover its all-time high of $73,700. The analysts note that Harris’ increasing stake in Polymarket has unsettled the crypto markets, keeping Bitcoin range-bound and preventing it from reaching previous highs. This year’s presidential election is the first time cryptocurrencies have become a major issue on a major ballot, and Trump’s pro-Bitcoin stance has resonated with the crypto community. At the 2024 Bitcoin Conference, Trump announced that his campaign had raised approximately $25 million from the crypto community.