Bernstein Report: Expect the encryption market to maintain a range of Fluctuation before the US election

BlockBeats News, on August 5th, according to The Block, the research firm Bernstein stated in a research report that ‘It is not surprising that BTC, as a ‘risk-averse’ asset, has shown a preliminary reaction. This pattern often appears in the BTC market (it also appeared in the lightning crash in March 2020), especially because it is the only market that trades on weekends. We remain calm.’ Analysts added, ‘We don’t see any incremental negative factors here. If the usual response to concerns about a recession in the U.S. economy is interest rate cuts and increased currency liquidity, we expect the price of ‘hard assets’ like BTC (digital gold) to rise.’ However, Bernstein analysts stated that BTC is still a ‘Trump trade’ because the market tends to support this U.S. presidential candidate’s pro-encryption stance. Analysts said, ‘It is not surprising that BTC and the cryptocurrency market have weakened when the odds between Trump and Harris on Polymarket narrowed. We expect the BTC and cryptocurrency market to remain within a range of fluctuations before the U.S. election and be influenced by catalysts such as presidential debates and the final election results.’ Overall, Bernstein expects the encryption market to react to macroeconomic and election signals in the third quarter. However, analysts predict that if the broader stock market recovers due to the reaction of the Federal Reserve, the BTC and cryptocurrency market will also follow this trend.