While the Fed rate cuts and the upcoming elections in the US are driving risky assets higher, Bernstein analysts wrote that small investor movements have further increased risk appetite.
In an evaluation note sent to the company’s clients today, Bernstein analysts led by Gautam Chhugani stated that the increasing probability of crypto supporter Donald Trump winning the presidential elections has benefited Bitcoin and other risky assets. It was also stated that Kamala Harris’ more open and clear speech on crypto had a positive effect on prices.
“Fear of decline has decreased”
Analysts wrote that developments regarding the US presidential elections in particular have reduced investors’ fear of decline and said, “The sentiment of small investors is screaming bullish.”
Finally, on betting sites such as Polymarket and Kalshi, Trump had opened the gap against Harris by more than 13 percent. ETFs had also received a total net investment of more than $2.1 billion in the last 6 trading days. Bitcoin mining stocks and Bitcoin-focused companies such as Coinbase and MicroStrategy had also closed the past week with serious increases.
Bernstein analysts also noted that Robinhood’s crypto trading revenues increased by 160% compared to the same period last year, indicating that retail customers are feeling positive.
“There is also interest in meme coins”
Chhugani and his analysts also drew attention to the investments in meme coins:
“Investment in meme coins has tripled in the last 6 months, reaching $66 billion. Meme coins are currently the fastest-growing category in the crypto world. Whether we like them or not, small investors find such coins entertaining. They see them as a means of social interaction. This brings a natural rise.”
Last week, meme coin investor Murad Mahmudov’s words about meme coins, “A meme coin super cycle will come,” made a big splash.
The fact that the artificial intelligence bot called Truth Terminal acquired the meme coin called GOAT and then other artificial intelligence programs turned to it, enabled this meme coin to reach a market value of $300 million. The AI bot also increased its wallet value to $1.2 million after purchasing a meme coin called Fartcoin.
Chugani said, “While traditional finance has difficulty integrating with AI, we see that this is not the case in crypto.”