Trump’s Crypto Rally? Analyzing Key Stocks Ahead of Bitcoin Nashville

As the cryptocurrency world gears up for former President and Republican Candidate Donald Trump’s anticipated speech at the Bitcoin Nashville conference on July 27, analysts from Bernstein are keeping a close eye on seven pivotal crypto stocks that could be significantly impacted. In their latest note, the research firm painted a rosy picture for the crypto sector, buoyed by an improving regulatory landscape.

Led by Gautam Chhugani, the Bernstein team argued that the markets have yet to fully price in the potential regulatory easing if Trump secures a win in the upcoming November elections. This sentiment is bolstered by expectations of increased allocations from institutional investors to both cryptocurrencies and crypto stocks.

Last week, the Bitcoin markets witnessed a notable resurgence, with BTC climbing 13%, vaulting past the $67,000 mark. Correspondingly, crypto stocks outpaced this growth, surging 22%—a testament to their high-beta nature relative to Bitcoin.

The spotlighted stocks span across various segments within the crypto ecosystem:

1. Bitcoin Mining Consolidators: Companies like Riot Platforms, CleanSpark, and Marathon Digital Holdings are forecasted to experience robust growth. Riot Platforms, for instance, boasts over $0.6 billion in Bitcoin assets and is in the process of establishing the world’s largest Bitcoin facility in Texas.
2. Hybrid Bitcoin/AI Data Centers: Core Scientific and Iris Energy represent this category. Core Scientific recently secured a $4.7 billion co-hosting deal extending over 12 years with CoreWeave, a prominent AI GPU cloud provider. Iris Energy, on the other hand, has ventured into AI cloud services, adding about 500 GPUs for a leading AI firm.
3. Crypto Brokerage/Exchange Platforms: Robinhood is highlighted for its potential in the crypto brokerage space, with projections suggesting a doubling of its crypto-related revenues over the next two years.
4. Bitcoin Corporate Treasury: MicroStrategy continues to shine as a significant corporate holder of Bitcoin, with aggressive capital market strategies bolstering its position.

The Bernstein team’s bullish stance extends beyond these stocks, with a bold BTC price target set for 2025. They anticipate Bitcoin to break the $100K barrier, potentially reaching as high as $200K during the cycle’s peak, driven by accelerated institutional adoption through ETFs and corporate treasury investments.

Moreover, the upcoming U.S. elections and Trump’s pro-crypto stance are seen as additional catalysts that could further invigorate the Bitcoin price. The market’s positive reaction to any improvement in the odds of a Republican victory underscores the high stakes attached to Trump’s upcoming address at the world’s largest Bitcoin conference.

As the crypto market navigates through dynamic regulatory and political landscapes, the insights from Bernstein highlight a sector brimming with potential, awaiting the strategic plays of influential figures and institutional investors.