Analysts Raise Bitcoin Price Target to $90,000 Amid Improved Market Dynamics
Research and brokerage firm Bernstein has revised its year-end price target for bitcoin, increasing it from $80,000 to $90,000. The analysts at Bernstein also predict that bitcoin could reach as high as $150,000 during the 2024-2025 cycle. They believe that the upcoming halving event will have less impact on miners compared to previous years. This is due to factors such as general bull market conditions, strong ETF inflows, low miner leverage, and robust network transaction fees.
Bitcoin Halving and Miners
The next bitcoin halving is estimated to occur on April 20. During this event, the reward for miners will be reduced from 6.25 BTC to 3.125 BTC per block. Previous halvings have resulted in declines in the Bitcoin network hashrate of around 15-20%. However, the analysts at Bernstein expect miner shutdowns to be lower this time around, with a projected hashrate reduction of approximately 7%. They attribute this to the current bull market and its positive impact on minersโ balance sheets.
Benefiting More Efficient Miners
Bernsteinโs analysts anticipate that more efficient and lower-cost miners like CleanSpark and Riot Platforms will benefit the most from the halving. These companies are expected to gain relative market share post-halving. Additionally, Marathon Digital is highlighted as having potential due to its transition to a self-mining model and high liquidity position.
Bitcoin Miners as Equity Proxy
The analysts at Bernstein suggest that investing in Bitcoin miners remains the best equity proxy for the cryptocurrency. The top three U.S.-listed miners currently control around 10% of the total network hashrate and have a combined market cap of approximately $13 billion. The analysts predict that these miners will see increased capacity in 2024/2025.
Price Targets
Bernstein rates CleanSpark and Riot stock as outperform, with price targets of $30 and $22, respectively. Marathon Digital receives a market-perform rating with a target price of $23.
โDip Buying Opportunityโ
The recent dip in bitcoinโs price, from all-time highs of over $73,000 to below $63,000, is seen by the analysts at Bernstein as a temporary buying opportunity. They expect the market to consolidate prior to the halving event and then continue the overall bull trend.
As of now, bitcoin is trading at $66,845. It has experienced a 5% increase over the past 24 hours but is down 6.5% over the past week. Year-to-date, it has gained around 58%.
Hot Take: Analysts Raise Bitcoin Price Target to $90,000 Amid Improved Market Dynamics
The analysts at Bernstein have revised their year-end price target for bitcoin to $90,000, reflecting improved market dynamics. They believe that bitcoin could reach as high as $150,000 during the 2024-2025 cycle. The upcoming halving event is expected to have less impact on miners compared to previous years due to various factors such as strong ETF inflows and robust network transaction fees. More efficient miners like CleanSpark and Riot Platforms are predicted to benefit the most from the halving, while Marathon Digital shows potential due to its transition to a self-mining model. Investing in Bitcoin miners remains a reliable equity proxy for the cryptocurrency. The recent dip in bitcoinโs price is seen as a buying opportunity, and the overall bull trend is expected to continue.
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