Tom Lee of Fundstrat Global Advisors and analysts at Bernstein predict the market will remain strong heading into 2025, regardless of the outcome of the upcoming U.S. presidential election.
While Lee expects broad market gains across sectors, Bernstein emphasized Bitcoin (BTC)'s resilience amid political uncertainty.
Tom Lee, managing partner and head of research at Fundstrat, recently shared his views on CNBC, saying that good economic fundamentals and a dovish Federal Reserve stance are driving a strong year-end rally. He stated that this was a valid basis.
As election-related uncertainty eases, stranded funds could flow back into the market, Lee said. he said:
“I'm bullish only in the sense that election uncertainty is causing people to be risk-averse and keep fundraising on the sidelines, but the fundamentals are good.”
Lee noted that strong earnings reports and support from the Federal Reserve will be strong drivers once the uncertainty surrounding the election subsides. He believes the market can continue to perform well through the end of 2024 and beyond, even with a divided or unified government.
Bitcoin survives political change
Mr. Lee's comments parallel Mr. Bernstein's outlook for Bitcoin, which says it remains poised to withstand political change.
In a note published on November 4, Bernstein analysts said that factors supporting Bitcoin's long-term growth include U.S. fiscal policy, record debt levels, and increased demand for hard assets. Structural factors were emphasized.
According to Bernstein, “Bitcoin remains the most resilient of the cryptocurrencies,” and its limited market share compared to global financial assets leaves plenty of room for growth. That's what it means. The firm has set a price target for Bitcoin of $200,000 by 2025, anticipating the digital asset's appeal in an environment of fiscal indiscipline and financial expansion.
Bernstein analysts also believe that Bitcoin's recent ETF adoption (which has brought in more than $23 billion in inflows since the beginning of the year) could provide further momentum for Bitcoin, regardless of who wins the presidency. He pointed out that there is.
They are likely to have an initial price reaction depending on the election results, with Trump's victory potentially pushing Bitcoin toward new highs of $80,000 to $90,000, while Harris' victory could push Bitcoin to $50,000 initially. We believe this could lead to a decline near the dollar. Analysts emphasized that President Trump's pro-cryptocurrency stance contrasts with Harris' position, which is considered a hawk.
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