- The decision by Bernstein analysts to raise their year-end price target for bitcoin from $80,000 to $90,000 reflects a positive outlook on the cryptocurrency market’s trajectory.
- This upward revision is driven by improved market dynamics and bullish conditions, including strong ETF inflows, low miner leverage, and robust network transaction fees.
Bernstein, a prominent research and brokerage firm, has adjusted its year-end price projection for Bitcoin, elevating it from $80,000 to $90,000, citing positive shifts in market dynamics. Analysts Gautam Chhugani and Mahika Sapra anticipate bitcoin to peak at $150,000 during the 2024-2025 cycle.
They assert that the forthcoming halving event, reducing miner rewards from 6.25 BTC to 3.125 BTC per block, will likely have a relatively mild effect on miners compared to previous cycles. While historical data shows a 15-20% reduction in the Bitcoin network hashrate post-halving, Bernstein estimates a more moderate decline of around 7% this time, attributing it to the buoyant bull market conditions and healthier miner financial positions.
This shift is expected to particularly benefit efficient miners such as CleanSpark and Riot Platforms, potentially bolstering their market share in the industry. Although CleanSpark and Riot are poised to emerge as industry leaders, Bernstein also highlights Marathon Digital’s potential, given its transition to a self-mining model and strong liquidity reserves.
Emphasizing that investing in Bitcoin miners remains a reliable proxy for cryptocurrency exposure, Bernstein notes that the top three U.S. listed miners control approximately 10% of the total network hashrate, with a combined market capitalization of around $13 billion. They anticipate further expansion in mining capacity throughout 2024 and 2025.
Additionally, the analysts view bitcoin’s recent price correction as a favorable buying opportunity, predicting market stabilization before the halving event and subsequent resumption of the bullish trend. As of the latest update, bitcoin is trading at $66,845, marking a 5% increase over the past 24 hours, albeit a 6.5% decline over the past week, with a year-to-date appreciation of approximately 58%.
Bernstein’s Proven Expertise in Market Research
Bernstein, hailed as Wall Street’s premier sell-side research and brokerage firm, boasts a rich history dating back to its founding in the United States in 1967, followed by expansion into the United Kingdom in 1999. With a global equity trading platform spanning across the U.S., Europe, and Asia, Bernstein is a sought-after destination for leading investment managers worldwide.
Consistently ranked at the top of the industry by esteemed arbiters, Bernstein’s research is esteemed for its overall quality, industry knowledge, and detailed financial analysis. In Institutional Investor’s annual client survey, over 90% of U.S. analysts and a majority of European analysts were recognized as top performers, a testament to Bernstein’s unparalleled expertise.
Additionally, the acquisition of Autonomous Research in April 2019 solidified Bernstein’s position as the largest global independent research firm, further enhancing its reputation for unbiased and comprehensive market analysis. With a legacy defined by renowned Blackbooks and a community of respected Research Analysts, Bernstein remains dedicated to delivering the highest caliber of investment and industry insights. As a wholly-owned subsidiary of AB, Bernstein continues to set the standard for excellence in market research and analysis.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
