Bitcoin surged to nearly $88,000 on Monday, outperforming major indices like the Nasdaq Composite. A Bernstein strategist, Gautam Chhugani, attributed this rise to the current trade war and regulatory efforts in the US.
Chhugani notes that Bitcoin has underperformed the Nasdaq by 6 percentage points so far this year but expects blockchain assets to gain importance amid global deglobalization trends. The analyst believes the Trump administration’s plans for stablecoins will benefit Bitcoin, as it sees crypto as a “main street” proxy for financial innovation.
Federal Reserve Chair Jerome Powell has also expressed support for stablecoins, citing their potential wide appeal. Bernstein analysts see banks exploring stablecoin technology for cross-border payments and other businesses.
The recent surge in US assets has been followed by a decline in Bitcoin, which has mostly held above $80,000. However, the sale of Bitcoin ETFs seems to be limited, with rising institutional holdings leading to more resilient capital.
If the US were to purchase Bitcoin for its strategic reserve, it could act as a positive catalyst, according to Bernstein analysts.
Source: https://finance.yahoo.com/news/bitcoin-rises-above-88000-as-main-street-proxy-outperforms-nasdaq-amid-trump-tariff-turmoil-171357006.html