Bernstein’s projection that Bitcoin will reach $150,000 by 2025 is supported by the SEC’s planned approval of a Bitcoin ETF. The rise in Bitcoin price and the bullish stance of Bitcoin mining stocks underscore the optimism surrounding the future of the cryptocurrency.
Bernstein, a distinguished financial institution, has reaffirmed its optimistic forecast for Bitcoin, suggesting a potential rise to $150,000 by 2025. This prediction is primarily based on the expected approval of a Bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission. US Securities and Exchange Commission (SEC), a development that will significantly change the cryptocurrency investment landscape by early 2024.
A critical factor in Bernstein’s analysis is the SEC’s planned green light for a Bitcoin ETF. The approval, expected in the first quarter of 2024, is seen as a pivotal moment that could significantly improve the cryptocurrency’s appeal to a broader range of investors.
Market Confidence and Bitcoin ETFs
A recent YouTube video from Crypto News Flash (CNF) shed light on a report that further reinforces Bernstein’s confidence in Bitcoin’s potential to reach $150,000 by mid-2025. This optimism comes after a notable rally in the cryptocurrency market and unexpected high inflows into Bitcoin ETFs.
Despite the recent drop in stock prices, Bernstein’s stance on Bitcoin mining stocks remains bullish, seeing them as the prime opportunity to capitalize on the current surge in the cryptocurrency market. The price of Bitcoin has soared to new heights this year, surpassing $72,000, with expectations that the upcoming halving event will push its value even higher.
Analysts noted that Bitcoin miners’ long trading requires more patience, highlighting the need for a long-term perspective to benefit from Bitcoin mining investments. They further explained the following:
“With Bitcoin hitting new highs of $71,000, we expect institutional interest in Bitcoin stocks to finally subside and Bitcoin miners to be the biggest beneficiaries.”
Halving Mining Impact and Profitability
The expected rise in Bitcoin prices and transaction fees is expected to protect miners against a possible doubling of production costs after the halving. Riot Platforms (RIOT) and CleanSpark (CLSK), with outperform ratings, “will post ~70% and 60% gross margin respectively,” according to the report.
Bernstein’s recommendation leans toward investing in Bitcoin mining stocks like CleanSpark and Riot Platforms, which are expected to maintain high gross margins despite rising production costs after the halving.
Despite the underperformance of mining stocks compared to Bitcoin’s rally, attributed in part to investors’ preference for spot ETFs for their perceived safety, Bernstein anticipates a significant shift in institutional interest toward Bitcoin stocks. This change is expected to especially benefit Bitcoin miners, although it will require patience on the part of investors.
Market Sentiment and Current Trading
The overall market sentiment towards Bitcoin remains very optimistic, as evidenced by the significant gains in the CoinDesk 20 index. Currently, Bitcoin (BTC) is experiencing a notable increase in its value, trading at $72,223, marking a substantial rise of 3.27 % over the last day and 7.53% over the past week.
“These are still the early days of Bitcoin integration into traditional asset portfolios,” says the note by Gautam Chhugani and Mahika Sapra. “We are now more convinced of our $150K price for Bitcoin.”
“We estimate $10 billion in inflows by 2024 and another $60 billion by 2025,” they continued. “In the last 40 trading days since the ETF’s launch on January 10, inflows to the Bitcoin ETF have already exceeded $9.5 billion.”
This bullish trend reinforces Bernstein’s confident prediction for Bitcoin’s future, highlighting the cryptocurrency’s continued growth and its potential for further gains.
By Audy Castaneda
