Key Points

Bitcoin’s recent bullish moves are triggered by rising chances for Trump to win the US elections.
Also, signs of a switch from AI-diversified stocks to “pure-play” BTC miners emerge.

Bernstein analysts have recently addressed potential catalysts for the latest bullish Bitcoin price action, along with a notable shift from AI-diversified stocks to “pure-play” Bitcoin miners.

Bitcoin’s Recent Rally Correlated to Rising Trump Election Odds

Bitcoin started this week with a notable surge in price of around 5%, following the latest weekend events involving the former US President, Donald Trump.

At the moment of writing this article, BTC is trading above $65,000, up by over 1% in the past 24 hours.

Earlier, BTC’s price topped $66,000, the first time since last month, marking a significant price rally at the beginning of this week.

According to analysts at Bernstein, Bitcoin’s notable price surge of around 14% in October is correlated to Trump’s rising election odds.

Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia wrote in a note to clients today that they believe BTC’s strength to be triggered by the return of a correlation with the rising odds of a Trump win at the US elections.

They also noted that despite both political sides showing crypto support, the market bid is stronger on Trump’s winning odds improving, according to data from prediction markets.

Polymarket official info shows Trump currently leading Kamala Harris by odds of 56.5 to 43%.

Also, the predictions platform Kalshi shows Trump leading Harris by 55% to 45%.

It’s also worth noting that last week, Bernstein analysts predicted that Bitcoin will hit $80,000 if Trump wins the US elections slated for November 5.

Speaking of bullish catalysts for BTC, the analysts also mentioned in their letter today, that MicroStrategy’s rising stock is another indicator of BTC’s strength.

MicroStrategy’s BTC Playbook

MicroStrategy‘s stock has outperformed Bitcoin this year, and it gained around 194% so far, compared to BTC’s 55%.

However, the analysts noted that the company’s Bitcoin strategy of accumulation is making MSTR a leading indicator of the coin’s strength. They even compared it to a “corporate Bitcoin index.”

As previously reported, MicroStrategy had made the most of BTC lows, by issuing equity, and convertible debt close to $2 billion to buy the BTC dip, and they got rewarded for doing so, hence the stock price surge.

MicroStrategy has been aggressively buying BTC since 2020, and the firm now has 1.2% (252,220 BTC worth around $16.5 billion) of the total BTC supply of 21 million. The firm is now the largest corporate Bitcoin holder in the world.

Last week, Michael Saylor, the firm’s founder and executive chairman, said that the company’s goal is to be the leading Bitcoin bank, growing to become a trillion-dollar company.

Besides the bullish trajectory of the Bitcoin-accumulating MicroStrategy, Bernstein analysts also brought up another notable element regarding a switch from AI diversifiers to “pure play” Bitcoin miner stocks.

A Switch From AI to Pure Bitcoin Miners

Analysts also addressed a move from AI diversifier stocks to what they called “pure-play” Bitcoin miners amidst a potential further breakout for the coin.

According to them, AI diversifiers have benefitted from rising demand for high-performance computing and AI data centers, considering their significant power.

On the other hand, Bitcoin mining firms that don’t use AI have stated that the return on Bitcoin mining’s cheaper infrastructure and faster energization is quicker compared to AI’s gestation periods.

The analysts also noted that BTC miners using AI data centers have seen stronger preference, with Core Scientific, as the leader (up by 277% this year), they have shown signs of a bottom in the past 30 days.