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• If Trump wins the U.S. election in November, bitcoin is expected to hit new highs, the report said.
• Bernstein said a Harris election win could see the crypto fall to as low as $30,000.
• Positive crypto regulatory policy could spur innovation and increase adoption, the report said.

Bitcoin (BTC) is expected to reach new highs later this year if Donald Trump wins the U.S. election in November, and the cryptocurrency could hit $90,000 by the fourth quarter, broker Bernstein said in a research report on Monday.

If Kamala Harris wins the election, the largest crypto by market cap is expected to break its current floor around the $50,000 level and could test the $30,000-$40,000 range, the report said.

The broker noted that Trump has been very vocal about making America the "bitcoin and crypto capital of the world," and has mentioned digital assets at every policy speech he has made.

Trump's speech at the Bitcoin Nashville conference in July called for the U.S. to be a bitcoin mining powerhouse, for the appointment of a crypto friendly Securities and Exchange Commission (SEC) chairman, the formation of a national strategic bitcoin stockpile and a crypto advisory council to the President.

Conversely, crypto has not even been mentioned in any of Harris's speeches, the report noted.

Bernstein said the crypto market has been faced with two significant headwinds for the past three years, macro and regulatory.

"After the last three years of regulatory purge, a positive crypto regulatory policy can spur innovation again and bring the users bank to financial products on the blockchain," analysts led by Gautam Chhugani wrote.

"Elections remain hard to call, but if you are long crypto here, you are likely taking a Trump trade," the report added.

Read more: Crypto Holders Disproportionately Favor Trump for U.S. President, New Academic Poll Shows