Key Takeaways:
Bernstein analysts are “more convinced” after the latest rally that bitcoin will hit $150,000 in 2025.- Analysts predict that Bitcoin’s price is likely to extend its record run following April’s halving.
- They added that the massive inflows to bitcoin ETFs bolsters their view that bitcoin miners are the best proxy for the token.
As Bitcoin continues its upward trajectory, soaring past $72,000 to set a new record high, analysts at Bernstein express increased confidence in their prediction that the cryptocurrency will reach $150,000 by mid-2025.
In a client note on Monday, analysts Gautam Chhugani and Mahika Sapra reiterated their bullish outlook, foreseeing a potential breakout in Bitcoin’s price following the upcoming halving event in April. They emphasized their heightened conviction in the target price, originally forecasted last year, citing institutional flows as a key factor in their estimates. The analysts projected significant inflows of $10 billion in 2024 and an additional $60 billion in 2025.
Pointing to the recent decline in Bitcoin miners’ stocks, the analysts suggested that this may represent a final opportunity for investors before the halving, as mining firm shares are expected to catch up with the surge in Bitcoin’s price. They underscored the enduring relevance of Bitcoin miners as the best proxy for the cryptocurrency, even after 14 years since its inception.
The analysts advised investors to look beyond the daily correlation between mining performance and Bitcoin’s price, viewing moments of weakness in mining shares as potential investment opportunities. They anticipated institutional interest in Bitcoin equities to rise alongside the cryptocurrency’s ascent, with Bitcoin miners poised to benefit the most.
Furthermore, the analysts noted a surge in Bitcoin ETF inflows, exceeding $9.5 billion since regulatory approval in January. With inflows averaging around $370 million per day over the past month, they projected that Bitcoin ETFs could surpass their 2025 inflow estimates within 166 trading days for the remainder of 2024.
Despite a 2.5% dip in Bitcoin’s price on Tuesday, hovering around $70,801, analysts remain optimistic about its long-term trajectory, buoyed by institutional interest and favorable market conditions.