Recently, analysts from private wealth management firm, Bernstein, have reiterated their previous Bitcoin prediction. Gautam Chhugani and Mahika Sapra, analysts at Bernstein, expressed their confidence in Bitcoin reaching $150,000 by mid-2025. This forecast is a revision of their earlier prediction made in November 2023, when they initially forecasted Bitcoin to surge to $150,000. Back then, Bitcoin was trading at around $35,000, making their estimate about five times the current price of BTC. With Bitcoin recently hitting new all-time highs above $71,000, the analysts at Bernstein believe that their forecast is becoming more plausible.
The analysts at Bernstein have identified several factors that could contribute to the bullish momentum of Bitcoin. One significant factor is the increasing success and demand for Spot Bitcoin Exchange Traded Funds (ETFs). The firm estimates that there could be inflows of $10 billion in 2024 and an additional $60 billion in 2025. In just 40 trading days since the ETF launch on January 10, Bitcoin ETF inflows have already exceeded $9.5 billion. This influx of capital into Spot Bitcoin ETFs could play a crucial role in driving up the value of Bitcoin.
The analysts at Bernstein also pointed out that investing in Bitcoin miners could serve as the best equity proxy to BTC. Their analysis suggests that BTC miners tend to outperform during bullish cycles and underperform during bearish periods. As Bitcoin continues to surge to new highs above $71,000, Bernstein analysts anticipate a rise in institutional interest in Bitcoin-related equities, with BTC miners standing to benefit the most. Despite concerns that the upcoming Bitcoin halving could negatively affect small mining companies and solo miners, Bernstein analysts believe that the rising price of BTC and increased transaction fees could act as a cushion during the halving period.
Currently, Bitcoin is trading at $68,218, with a slight price correction of about 6.96% in the past 24 hours. However, the overall trend remains bullish, and many analysts, including those at Bernstein, anticipate a potential price surge following the halving event in April 2024. It is important to note that investing in cryptocurrencies carries inherent risks, and individuals are advised to conduct their research before making any investment decisions.
As the market continues to evolve, the future trajectory of Bitcoin remains uncertain. While analysts at Bernstein are optimistic about Bitcoin reaching $150,000 by 2025, it is essential for investors to exercise caution and stay informed about the latest developments in the cryptocurrency space. As with any investment, thorough research and risk assessment are crucial to making informed decisions in the dynamic world of digital assets.