Following a series of discussions with a various group of US investors, analysts at Bernstein have noted a notable commentary: various market participants are increasingly convinced that “crypto is back.”
This renewed enthusiasm comes on the heels of a political shift under the Trump administration, which has sparked growing curiosity in regards to the potential implications for digital assets.
In accordance with Bernstein’s team, led by Gautam Chhugani, this optimism is just not yet accompanied by an in depth understanding of the emerging regulatory space, but it surely’s clear that investors are preparing for increased involvement.
Regulatory Developments And Institutional Interest
Bernstein highlighted a broad spectrum of investor interest spanning traditional finance, payments, technology, and crypto-focused sectors.
While there’s an eagerness to explore crypto-related equities—starting from exchanges to AI-integrated miners—the analysts also identified a keen give attention to Bitcoin price dynamics and stablecoins, especially because the US legislative environment evolves.
Notably, recent players in fixed income and convertible markets have shown heightened interest, with MicroStrategy’s strategic moves continuing to draw attention.
Bernstein pointed to several key regulatory aspects that would shape the long run of the crypto market. Amongst them are President Trump’s executive orders to explore strategic digital asset reserves and the Securities and Exchange Commission (SEC)’s potential repeal of regulations hindering US banks from holding digital assets.
These measures, if implemented, may promote broader institutional participation and enhance liquidity. The analysts forecast a surge in corporate Bitcoin purchases, with annual volumes potentially doubling by 2025.
Despite the broad interest, institutional investors remain neutral on Bitcoin’s current price trajectory, in accordance with Bernstein. Moderately than aggressive bullish or bearish stances, the prevailing sentiment suggests a wait-and-see approach. Equity investors, particularly, are concentrating on crypto-related stocks as direct spot Bitcoin investments remain out of reach for a lot of.
Corporate and Stablecoin Growth
Investor discussions also touched on the evolving role of stablecoins and their potential to bolster the US dollar’s dominance in digital finance.
Bernstein predicts that stablecoin laws will drive adoption in areas like cross-border payments and remittances, with banks and fintech firms exploring the revenue and integration possibilities these digital assets offer.
On the company side, Bernstein’s analysts identified MicroStrategy as a key player in Bitcoin-linked capital markets. Although some view the corporate’s heavy Bitcoin exposure as dangerous, Bernstein argues that MicroStrategy’s approach—issuing convertible debt and preference shares—has been instrumental in advancing institutional Bitcoin adoption.
With other corporations more likely to follow suit, the firm anticipates overall corporate Bitcoin purchases to achieve $50 billion annually by 2025. Bernstein maintains a positive outlook on several firms tied to crypto’s resurgence, including Robinhood, Riot Platforms, and Core Scientific.
They see these firms as well-positioned to learn from the growing momentum within the digital asset space, driven by regulatory clarity, institutional participation, and stablecoin innovation.
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