The future trajectory of Bitcoin could be significantly influenced by the results of the upcoming U.S. presidential election, according to a recent research report from investment bank Jefferies. The report, released on Monday, highlights the political nuances observed at the Bitcoin Nashville conference held last week, where notable figures, including former President Donald Trump, engaged with the cryptocurrency community.
Jefferies analysts Jonathan Petersen and Joe Dickstein suggest that Trump’s recent pro-crypto stance could have a substantial impact on Bitcoin’s short-term price fluctuations. “His overtures to the industry to install crypto-friendly regulators may have the effect of near-term BTC price being tied to the outcome of the U.S. presidential election,” the analysts noted in their report.
During his speech at the conference, Trump vowed to maintain a strategic Bitcoin reserve and pledged never to sell the government’s seized Bitcoin (BTC). He also promised to appoint crypto-friendly regulators, establish a crypto industry presidential advisory council, and transform the U.S. into the “crypto capital of the planet.”
Jefferies acknowledged that this recent shift in Trump’s policy towards cryptocurrencies could affect Bitcoin’s price depending on the election results in November.
In addition to political developments, the report touched on Bitcoin’s performance and mining sector. Since the Bitcoin halving event in April, the cryptocurrency has seen a 5% increase. However, the network’s hashrate experienced an 8% decline in May and June. Despite these fluctuations, mining profitability has proven to be somewhat better than initially anticipated, with mining revenue per exahash decreasing by 40%-45% rather than the 50% drop that was feared earlier in the year.
The report also highlighted ongoing consolidation in the bitcoin mining industry. Larger mining firms like CleanSpark (CLSK) are actively expanding their operations, as evidenced by their recent acquisition of GRIID (GRDI). Riot Platforms (RIOT) also attempted to acquire Bitfarm (BITF), though this offer was rejected. The report suggests that access to power is becoming increasingly valuable in the sector, with more mergers and acquisitions likely on the horizon.
