Bitcoin and BTC mining pose promising future: analyst

Institutional developments and announcements coming out of Nashville are creating a more optimistic outlook for Bitcoin and BTC mining than previously, analysts at HC Wainwright & Co say.

HWC analyst Mike Colonnesse has lined up bullish catalysts for Bitcoin (BTC) and the BTC mining sector as the United States could be poised for national adoption of the leading cryptocurrency, he wrote in his weekly report published on July 30.

Republican Party candidate and former President Donald Trump outlined his approach to cryptocurrency at the Bitcoin 2024 conference, also revealing plans to create a government reserve of approximately $12 billion worth of BTC.

Trump has vowed to position America as the world’s undisputed Bitcoin mining leader. A Bernstein report said BTC mining presents a $20 billion industry opportunity, raising the argument for mass adoption and global acceptance of BTC.

Senator Lummis also announced a strategic BTC reserve plan, while independent candidate Robert F. Kennedy suggested accumulating 1 million BTC. Polymarket data showed that Trump was ahead in winning the November elections.

Trump’s 60% chance of becoming America’s 47th president seems like a promise that he will propel Bitcoin as an asset class, and thus the broader cryptocurrency industry, forward.

Additionally, if Trump is elected, Securities and Exchange Commission Chairman Gary Gensler could be fired. This could be a boon for the digital asset ecosystem, as the SEC’s crackdown on blockchain finance and digital assets would effectively come to a halt.

Colonnesse wrote that Trump’s potential victory, increased institutional buying through spot exchange-traded funds, and regulatory clarity under the SEC’s new leadership could lead to a major leap forward for the entire BTC sector in the next 12 months.

Does greater adoption mean higher prices?

Trump’s plans, more corporate buyouts, and U.S. national adoption could mean less BTC in open circulation. Coupled with the halving, which increases scarcity by reducing mining rewards, Bitcoin prices could go parabolic.

Speaking in Nashville, MicroStrategy founder and BTC maxi Michael Saylor offered his 21-year forecast for the cryptocurrency, predicting that the best-case scenario would see BTC reach $49 million per coin by 2045, and at least $3 million if markets slowly run higher.

Possible Bitcoin bear barriers

The HWC analyst noted that BTC and mining activities would benefit from a more positive macroeconomic environment and a decrease in global geopolitical unrest.

Potential headwinds from these two factors could ease within months, Colonnesse explained. The Federal Reserve is likely to cut interest rates toward the end of the third quarter and the beginning of the fourth quarter of 2024. Easier monetary policies generally improve market sentiment and investor demand for risk assets, a term commonly used to classify Bitcoin and other blockchain currencies.