• Crypto market sentiment indicates that a Trump election win would be a more bullish outcome, Bernstein said in a report.
• The broker notes that bitcoin weakened as Polymarket odds and polls shifted in Harris' favor.
• Trump supporters have called the shift in odds an initial honeymoon phase, the broker said.

Market sentiment suggests that Donald Trump winning the U.S. elections in November would be bullish for crypto markets and a Kamala Harris victory would be bearish, Wall Street broker Bernstein said in a research report on Monday.

The broker noted that bitcoin has weakened following the shift in Polymarket odds and polls in Harris' favor, and it expects the world's largest cryptocurrency to "remain rangebound until there is a clearer election signal."

Read more: Kamala Harris Pulls Well Ahead of Trump on Polymarket

Polymarket is a prediction market that allows people to bet on the outcome of future events.

Republican supporters have called this the "initial honeymoon phase" and have argued that Polymarket odds are subject to manipulation, the report said.

Bernstein notes that Trump's side has been quite vocal about its crypto policy and has engaged with companies in the sector, bitcoin (BTC) miners and the wider community.

"The Trump-led Republican side has made a strong pitch to crypto voters by promising favourable policy for bitcoin and crypto innovation, even teasing a potential national bitcoin reserve," analysts led by Gautam Chhugani wrote.

Former President Trump promised to maintain a strategic national bitcoin reserve and said he would never sell the government's seized bitcoin, if elected again, in a speech last month at the Bitcoin Conference in Nashville.

Read more: Trump Backs U.S. Bitcoin Reserve and Says Democrat Win Will Be Disaster for Crypto: 'Every One of You Will Be Gone'