Bernstein Analysts Urge Investors to Allocate to Crypto As Soon As Possible

Following Donald Trump’s election victory, Bitcoin surged to an all-time high above $85,000, prompting analysts at Bernstein to issue a strongly bullish call on the crypto sector. 

The research team, led by Gautam Chhugani, urged investors to allocate to crypto “as soon as possible,” emphasizing that a new, crypto-friendly regulatory environment is on the horizon.

“Don’t fight this,” Chhugani wrote in an explosive note to clients on Monday. “Welcome to the crypto bull market — buy everything you can.” 

For investors who were previously hesitant due to regulatory concerns, Chhugani advised them to “invert their mental model” in light of Trump’s victory and anticipated policy shifts, starting with a new, pro-crypto SEC Chair.

Trump, once skeptical of cryptocurrency, pivoted during his campaign by proposing a national Bitcoin stockpile and pledging to “end the war on crypto regulation.” While the stockpile would require legislative approval and may not materialize until 2025, Bernstein analysts see a clear trend: “The direction of travel toward Bitcoin becoming a treasury asset, held by corporates, governments, and institutions, appears evident to us,” they wrote.

Adding to the optimism, Trump’s transition team includes notable crypto supporters such as VP-elect JD Vance, RFK Jr., and Vivek Ramaswamy—all of whom have disclosed Bitcoin holdings. High-profile Silicon Valley backers, including a16z and David Sacks, further bolster the pro-crypto narrative. According to Chhugani, the crypto industry spent $130 million during the election cycle to support favorable candidates, and demand for Bitcoin exchange-traded funds (ETFs) has already driven $4.7 billion in inflows in recent weeks.

Bitcoin has started the week strong, jumping to almost $85,400 on monday, up almost $20,000 in just one week, with no signs of slowing down.

Source: Brave New Coin Bitcoin Liquid Index

BlackRock’s $IBIT BTC ETF saw $1b in volume in the first 35min on Monday. The day after the election it did that in 20min, so a bit less than last Wed but still pretty intense. “Pretty good early indicator of strong inflows this week,” reported ETF analyst Eric Balchunas.

Source: X

There are 10 assets in the world that have made it to 1 Trillion. Bitcoin was the fastest. Sometimes the best bet is to simply ride the fastest horse.

Source: X

Bernstein outlined various avenues for gaining exposure to crypto assets. Institutional investors are encouraged to consider:

• Spot Bitcoin and Ethereum ETFs
• Public Bitcoin miners like Riot Platforms and Core Scientific
• AI-integrated miners such as Iris Energy (IREN) and CleanSpark
• Companies with Bitcoin corporate treasuries, notably MicroStrategy
• Crypto exchanges, including Robinhood and Coinbase

For those able to directly purchase cryptocurrencies, Bernstein recommended a diversified basket including BTC, ETH, SOL, OP, ARB, POL, UNI, AAVE, and LINK.

Chhugani’s team remains confident in their $200,000 Bitcoin price target by the end of 2025, even as Bitcoin trades at $85,000, up 97% year-to-date. “We believe risk-reward remains favorable over the next 12 months,” the note said.