Tom Lee of Fundstrat World Advisors and analysts at Bernstein predict sturdy markets heading into 2025, whatever the consequence of the upcoming US presidential election.
Whereas Lee expects a broader market restoration throughout sectors, Bernstein highlighted the resilience of Bitcoin (BTC) amid political uncertainty.
Tom Lee, managing accomplice and head of analysis at Fundstrat, just lately shared his views on CNBC, saying that favorable financial fundamentals and the Federal Reserve's dovish stance make a powerful case for year-end bullishness.
In line with Lee, the money pushed apart might return to the market as soon as uncertainty surrounding the election clears up. He mentioned:
“I'm solely bullish within the sense that the election uncertainty induced folks to scoff and cash to remain away, however the fundamentals have been good.”
Lee cited robust earnings experiences and Fed help as robust drivers as soon as election uncertainty subsides. He believes that even with a divided or unified authorities, the markets might carry out nicely till the top of 2024 and past.
Bitcoin to resist political shifts
Lee's feedback come alongside Bernstein's view of bitcoin, which they are saying is poised to resist political shifts.
In a be aware revealed on November 4, Bernstein analysts highlighted bitcoin's structural drivers, together with US fiscal coverage, document debt ranges and elevated demand for arduous property, as elements supporting its long-term progress.
In line with Bernstein, “Bitcoin stays probably the most resilient of cryptocurrencies” and its restricted market share in comparison with world fiscal property leaves loads of room for progress. The corporate has set a $200,000 worth goal for bitcoin by 2025, anticipating the digital asset's attraction in an setting of fiscal dysfunction and financial enlargement.
Analysts at Bernstein additionally famous that the latest adoption of Bitcoin ETFs — which has seen year-to-date inflows of greater than $23 billion — might add to its momentum, no matter who wins the presidency.
He sees a possible preliminary worth response relying on the end result of the election, with a Trump victory maybe pushing Bitcoin to new highs of $80,000-$90,000, whereas a Harris victory might initially result in a dip close to $50,000. Analysts identified that Trump's perceived pro-crypto stance contrasts with Harris' allegedly hawkish stance.
