Bernstein Is 'Now More Convinced' That Bitcoin Will Reach $150K Following Massive Rally

12 Mar 2024

The broker's research stated that spot bitcoin ETF inflows had exceeded forecasts.
Bitcoin ETF inflows have exceeded forecasts.
The broker is more confident in its $150K bitcoin price prediction.
Bitcoin mining stocks are the greatest method to capitalize on the crypto market's boom.
Bernstein analysts stated on Monday that they were more confident that bitcoin (BTC) will reach $150,000 by mid-2025, following the largest digital asset's rally to a new all-time high this year.
The analysts also projected that bitcoin will 'break out' following the next halving event, reaffirming their optimistic view on certain miners despite decreasing share prices.

The broker reiterated its $150,000 price estimate for the world's largest cryptocurrency, citing strong exchange-traded fund (ETF) inflows, and advised investors to acquire bitcoin mining stocks to capitalise on the upcoming rise.

Mining stocks fell substantially in early trade on Monday. CleanSpark (CLSK) dropped 9%, Marathon Digital (MARA) declined 6.7%, and Riot Platforms (RIOT) decreased 2.5% at the time of publishing.
"We believe bitcoin miners are still largely retail-traded stocks and institutions have largely stayed away from bitcoin proxies, as traditional investors remain skeptical and still approach crypto with a rear-view bias," the analysts stated.

"With bitcoin climbing new highs of $71K, we expect institutional interest in bitcoin equities to finally tip over, and bitcoin miners to be the largest beneficiaries," the analysts said, adding that the long bitcoin miners strategy required "more patience."

The growing bitcoin price and transaction fees would soften miners' decision to halve, even if production costs treble post-halving, according to the research. Riot Platforms (RIOT) and CleanSpark (CLSK), both rated outperform, are expected to have gross margins of around 70% and 60%, respectively.
Mining companies underperformed the bitcoin rise because investors are "long bitcoin and short miners." The trader believes it is safer to purchase spot ETFs rather than mining equities, which are at danger from the forthcoming halving.

Bitcoin was up more than 4% on Monday, trading about $72,269 at the time of publishing. The CoinDesk 20 index {{CD20}} gained 4%.

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