Bernstein analysts stand firm on their prediction of Bitcoin (BTC) reaching $150,000, following the accuracy of their previous forecast of $70,000 last month.
In their latest market research report, the brokerage firm highlighted the positive performance of U.S. Bitcoin spot ETFs, launched in January, as a contributing factor to their bullish outlook. They anticipate the asset to “break out” following its halving event next month.
Bernstein foresees Bitcoin (BTC) reaching $150,000.
Bernstein’s latest analysis builds upon its previous thesis from November of last year, where it projected Bitcoin (BTC) to attain a value of $150,000 by mid-2025. At that time, the analysis focused on various factors, including Bitcoin’s halving event, its traditional four-year cycle, and the tendency for its price to surge during bull markets, relative to its marginal production cost per coin.
However, the landscape has shifted with the introduction of Bitcoin ETFs. Since their launch, funds initiated by major players like BlackRock and Fidelity have witnessed significant net inflows, surpassing $10 billion in total, and absorbing a total of 185,150.3 BTC.
To provide context, the upcoming Bitcoin halving event will reduce the daily production of coins by 450 BTC. This reduction is equivalent to a buying pressure of 27,000 BTC over the same period. Yet, this impact pales in comparison to the buying influence exerted by the ETFs thus far.
Bitcoin ETFs registered the largest net inflows ($648 million) since day 1 pic.twitter.com/tgipgk4uzY
— Gayatri (@GayatriPC_) March 6, 2024
Nonetheless, the impending halving event remains a pivotal moment for BTC, historically serving as a reliable predictor of past crypto bull markets. As anticipation builds for the anticipated upswing, Bernstein identifies Bitcoin mining companies as the most promising avenue for leveraging Bitcoin through equity investments.
Optimistic about Bitcoin mining companies
Amidst Bitcoin’s surge to new heights, reaching $71,000, analysts led by Gautam Chhugani anticipate a tipping point in institutional interest towards Bitcoin equities, with Bitcoin miners poised to reap substantial benefits.
The analysts emphasize the necessity of patience for those engaged in long-term Bitcoin miner trades. They observe that the miner equity market remains largely dominated by retail investors, with institutional players maintaining a cautious stance towards cryptocurrency and its associated investments.
Despite Bitcoin’s impressive 62% year-to-date growth, the performance of most Bitcoin mining stocks has lagged behind, with companies like Riot Platforms (RIOT) and Iris Energy (IREN) experiencing declines of 24% and 27%, respectively.
One exception to this trend is CleanSpark (CLSK), which has outperformed its peers, boasting a 68% year-to-date increase. CleanSpark’s success can be attributed to its strategic announcements regarding multiple financing rounds aimed at expanding its mining operations in 2023.
Looking ahead, Bernstein predicts that CleanSpark (CLSK) and Riot Platforms (RIOT) are poised for further growth in 2024, with projected gross margins of approximately 70% and 60%, respectively.
