$BTC

Bitcoin gained 14 percent in October to rise above $65,000, a rise that is claimed to be linked to Donald Trump’s rising election chances.

Bitcoin, which gained 5 percent on Monday, has once again caught the attention of investors. According to analyst firm Bernstein, MicroStrategy is a potential bull market harbinger.

Trump is gaining ground again in the race

“We think the Bitcoin rally is linked to a reversal in Trump’s election chances,” Bernstein analysts Gautam Chhugani, Mahika Sapra and Sanskar Chindalia wrote in a note to clients.

Polymarket data shows Trump leading in five of the six key states and leading Kamala Harris overall by 55.9 percent to 43.8 percent. Republicans have a 78 percent chance of winning the Senate, while Democrats have a 56 percent chance of winning the House of Representatives.

According to Bernstein, if Trump wins, Bitcoin is expected to reach $80,000 to $90,000. However, if Harris wins, Bitcoin is expected to fall to $40,000.

MicroStrategy and Bitcoin

MicroStrategy has outperformed Bitcoin this year. The company's shares are expected to increase by 191 percent in 2024, while Bitcoin is up 55 percent. Bernstein says MicroStrategy's Bitcoin strategy has made the company an important indicator in the market. MicroStrategy has been accumulating Bitcoin through capital raising and borrowing since 2020, and currently holds a total of 252,220 BTC. These assets are worth about $16 billion and make up 1.2 percent of Bitcoin's total supply.

MicroStrategy founder Michael Saylor stated that the company aims to become the largest Bitcoin bank in the world and that they want to become a trillion-dollar company in line with this goal.