Bitcoin Price Forecast Soars to $90,000 as Halving Impact Expected to be Milder
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In a recent development, Bernstein, a prominent research and brokerage firm, has revised its year-end price forecast for Bitcoin, upping it from $80,000 to a robust $90,000. According to The Block, this adjustment reflects a positive shift in market dynamics and a bullish outlook for the cryptocurrency.
Analysts are projecting an even more ambitious future for Bitcoin, setting sights on a $150,000 peak during the 2024–2025 cycle. Interestingly, the upcoming Bitcoin halving event, a periodic reduction in the mining reward, is anticipated to have a less severe impact on miners compared to previous years.
“Current bull market conditions, characterized by strong ETF inflows, minimal miner leverage, and substantial network transaction fees, suggest a milder halving impact on miners, with dollar revenues remaining stable,” note analysts Gautam Chhugani and Mahika Sapra.
❖ Bernstein increasingly convinced Bitcoin price is heading towards $150,000
Bernstein sees Bitcoin's price hitting $150,000. In a note to clients this week, the firm told investors to buy Bitcoin miners as the recent underperformance "is probably the last window before…
— *Walter Bloomberg (@DeItaone) March 12, 2024
The halving, scheduled for April 20, will reduce the mining reward from 6.25 to 3.125 BTC per block. This event could render some mining operations unprofitable. Historically, post-halving periods have seen Bitcoin network hashrate declines of 15-20%. However, this time, analysts predict a modest 7% reduction, thanks to a supportive bull market.
Efficient miners like CleanSpark and Riot Platforms are expected to thrive post-halving, potentially increasing their market share. These firms are poised to become category leaders due to their significant self-mining capacity. Marathon Digital is also on the radar, transitioning to self-mining and boasting a strong liquidity position.
Investing in Bitcoin mining companies is deemed the most effective equity proxy for the cryptocurrency. The top three U.S.-listed miners—controlling about 10% of the total network hashrate and a combined market cap of approximately $13 billion—are expected to expand capacity in the coming years.
Bernstein has given CleanSpark and Riot stocks an ‘outperform’ rating, with price targets of $30 and $22, respectively, indicating substantial growth potential. Marathon Digital holds a ‘market-perform’ rating with a $23 target.
Bitcoin Maintains Strong Standing Despite Recent Slump
Following a recent $10,000 pullback from all-time highs above $73,000 to below $63,000, Bernstein analysts view this as a temporary buying opportunity before the halving. They anticipate market consolidation before the event and a continuation of the overall bull trend.
At the time of reporting, Bitcoin trades at $66,054, up 2.65% in the last 24 hours but down 6.57% over the week. The cryptocurrency has seen a 56.27% increase year-to-date, signaling a resilient performance amidst market fluctuations.
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