Bitcoin has been a topic of hot debate among investors and analysts alike, with many making bold predictions about its future price movements. Analysts from private wealth management firm, Bernstein, have recently reaffirmed their previous Bitcoin prediction, emphasizing that the cryptocurrency has a greater chance to reach $150,000 by 2025. Gautam Chhugani and Mahika Sapra, analysts at Bernstein, stated in a note to clients on Monday that they were now even more convinced of Bitcoin’s exponential surge to new all-time highs at around $150,000 by mid-2025. This statement serves as a reiteration of their earlier Bitcoin forecast made in November 2023.
The analysts at Bernstein have disclosed several key factors that could potentially trigger Bitcoin’s bullish momentum and drive its price to new heights. One of the factors highlighted by the company is the success and surging demand for Spot Bitcoin Exchange Traded Funds (ETF). According to the analysts, large volumes of inflows into Spot Bitcoin ETFs could significantly contribute towards increasing the value of BTC. They estimated $10 billion inflows for 2024 and another $60 billion for 2025. In the last 40 trading days since the ETF launch on Jan. 10, Bitcoin ETF inflows have already crossed $9.5 billion, showcasing strong investor interest in the cryptocurrency.
Another key point mentioned by the analysts is the potential impact of halving events on Bitcoin’s price movements. The analysts shared the sentiment of many crypto experts in the market, believing that the price of BTC could experience a fresh “break out” after the halving event in April 2024. Despite Bitcoin currently trading at $68,218 and experiencing a slight price correction of about 6.96% in the past 24 hours, Bernstein analysts remain optimistic about its future price trajectory.
In their note, Bernstein analysts also emphasized the role of investing in Bitcoin miners as a potential strategy to gain exposure to the cryptocurrency. According to their analysis, BTC miners typically outperform during bullish cycles and underperform during bearish periods. With Bitcoin recently surging to all-time highs above $71,000, the analysts expect institutional interest in Bitcoin-related equities to increase, with BTC miners potentially becoming significant beneficiaries of this trend. Despite concerns raised by some analysts about the impact of halving events on small mining companies and solo miners, Bernstein analysts believe that the rising price of BTC and elevated transaction fees could help cushion miners during the halving period.
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