Bernstein: Despite market volatility, the institutional adoption trend of Bitcoin still "remains on track"

PANews reported on August 5, according to Decrypt, that in the face of a severe blow to the cryptocurrency market on Monday, research and brokerage firm Bernstein stated that Bitcoin's performance in the third quarter will be severely affected by macroeconomic factors and political developments. In a report on Monday morning, Bernstein analysts wrote: "Overall, Bitcoin and the cryptocurrency market may be influenced by macro and election clues for most of the time in the third quarter of 2024," emphasizing the interconnection between digital assets and broader economic and political trends.

The report pointed out that BTC experienced a significant callback over the weekend and continued its plunge on Monday. The reason was due to "stock market panic" and broader economic concerns rather than problems specific to cryptocurrencies. Despite recent volatility, Bernstein remains optimistic about Bitcoin's long-term prospects. The report asserted: "We have not seen any incremental negative impact on cryptocurrencies. The institutional adoption trend of Bitcoin - ETF inflows and approvals from large securities companies/banks are still on track."

Looking forward to future predictions, Bernstein expects BTC and cryptocurrency markets might maintain range fluctuations before US elections as they weigh catalysts such as US presidential debates or final election results etcetera. Analysts suggest investors seeking participation in potential “Trump trades” could consider adding bitcoin or bitcoin-related stocks into their portfolios. However, they also noted if overall stock markets recover due to Federal Reserve’s response then it is expected that “Bitcoin Cryptocurrency markets would also follow suit.”