Bernstein Analysts Reinforce $150k Bitcoin Price Prediction, Highlight Bitcoin Miners as a Promising Investment
Bernstein analysts are standing firm on their previous forecast of Bitcoin (BTC) reaching $150,000, following the accuracy of their earlier prediction that the price would hit $70,000. In a recent market research report, the brokerage firm emphasized the success of US Bitcoin spot ETFs launched in January and projected that the asset will experience a significant surge after its upcoming halving event.
Bernstein’s Previous BTC Projection
Bernstein’s current analysis builds upon their prior thesis published in November of last year, which predicted that BTC would reach $150,000 by mid-2025. At that time, the analysis focused on Bitcoin’s halving event, its four-year cycle, and how its price tends to appreciate during bull markets relative to its marginal production cost per coin.
Bitcoin ETFs Impact
However, the introduction of Bitcoin ETFs has changed the landscape. Since their launch, funds from BlackRock, Fidelity, and other major players have witnessed net inflows exceeding $10 billion and have absorbed a total of 185,150.3 BTC. This influx of capital from ETFs far outweighs the anticipated buying pressure resulting from the halving event.
For context, the upcoming halving will reduce the number of coins produced per day by 450 BTC. This decrease translates to approximately 27,000 BTC worth of buying pressure over the same period. However, this is only a fraction of the buying impact created by ETFs thus far.
Twitter Chart: Bitcoin ETF Net Inflows
[Insert Twitter chart here]The chart above demonstrates that Bitcoin ETFs recently experienced their largest net inflows since their inception, reaching $648 million.
Despite this, the halving remains a highly anticipated event for Bitcoin and has historically been a strong predictor of crypto bull markets. In light of the expected rally, Bernstein analysts believe that Bitcoin mining firms present the best equity-based leverage play for investors.
Promising Outlook for Bitcoin Miners
Bernstein analysts, led by Gautam Chhugani, predict that with Bitcoin reaching new all-time highs of $71,000, institutional interest in Bitcoin equities will finally tip over. They expect Bitcoin miners to be the primary beneficiaries of this increased interest.
The analysts acknowledge that investing in Bitcoin miners requires patience due to its long-term nature. They note that the miner equity market is still dominated by retail investors, with institutions maintaining skepticism towards cryptocurrencies and proxy investments.
Despite most Bitcoin miners underperforming BTC and other proxies this year, Bernstein believes that CleanSpark (CLSK) and Riot Blockchain (RIOT) are likely to outperform in 2024. CleanSpark has experienced a 68% increase year-to-date after announcing multiple financing rounds for additional mining machines in 2023. Bernstein predicts that both CleanSpark and Riot Blockchain will achieve gross margins of around 70% and 60%, respectively.
Hot Take: Strong Confidence in Bitcoin’s Future
Bernstein analysts are doubling down on their prediction of Bitcoin reaching $150,000 and view the success of Bitcoin ETFs as a significant factor contributing to this surge. The upcoming halving event is also expected to drive the price higher. In light of these projections, Bernstein suggests that investing in Bitcoin mining firms presents an attractive opportunity for investors seeking exposure to the cryptocurrency market.
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