Asset management firm, Alliance Bernstein, tells investors to “buy everything you can” as analysts expect major altcoins to outperform Bitcoin over the next 12 months.
This comes as Bitcoin broke the $82,000 level. The crypto has since reached a new all-time high of $89,000.
In an article published on Monday, Analysts at Bernstein Research endorsed cryptocurrency, urging investors to buy everything [they] can” amid rising prices that appear to have been spurred by Donald Trump’s election victory.
Trump, now a staunch supporter of cryptocurrency, is set to be the first President to have founded a decentralized finance platform (World Liberty Financial) and is expected to usher in an era of favourable regulatory policies that could radically change how the US government engages with the crypto industry.
At the Bitcoin 2024 conference in July, Trump spoke about buying Bitcoin as a strategic reserve for the United States if he got elected. While this may not constitute an official campaign promise, it is one of several that the crypto industry holds on to.
Bitcoin’s rise to new highs
Bitcoin broke its previous all-time high of $73,000 on November 6th, after the Presidential election. Since then, it has scaled to a new all-time high of $89,000 reached today. However, Trump’s Presidential victory isn’t the only catalyst propelling the premier crypto to new highs.
Increased institutional interest is another major catalyst for Bitcoin’s price action as institutions buy up the crypto either as an inflation hedge or for potential future profits.
MicroStrategy recently purchased 27,200 Bitcoin for $2 billion, its largest single purchase since 2020. The company’s total holding as of Nov 10 is 279,420 bitcoins costing $11 billion at an average price of $42,600 per BTC.
Today, MicroStrategy’s stash has doubled in value as Bitcoin trades at the $85,000 level as of publishing. As a result, its share price is 23% higher than yesterday’s close of $340; a trend which is becoming common among publicly listed companies with Bitcoin holdings.
Institutional interest is also evident in Bitcoin spot ETF inflows. The top 10 Bitcoin spot ETFs in the US recorded a cumulative inflow of $1.12 billion yesterday, according to data from Coinglass, a cryptocurrency derivative data analysis platform.
Research Analysts from Bernstein believe that Bitcoin will reach $200,000 this cycle and that a friendlier regulatory environment will allow major altcoins, like Ethereum and Solana, to outperform Bitcoin over the next 12 months.
Bitcoin is down 2% on the day of publishing.
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