“Investors brace themselves for a potential meteoric rise as cryptocurrency experts predict Bitcoin’s value to skyrocket by a staggering 337%, propelling it to an unprecedented $150,000 by mid-2025, all while the market witnesses the dawn of an exciting new cycle, according to influential financial firm Bernstein.”
Bitcoin is predicted to soar 337% to reach $150,000 by mid-2025, according to analysts at Bernstein. This projection comes as the cryptocurrency enters a new cycle, with several significant industry developments on the horizon. One such event is the upcoming halving of bitcoin, which is expected to reduce its supply. This reduction in supply, combined with the potential approval of spot bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC), is likely to lead to increased demand for the cryptocurrency.
In their report, the analysts at Bernstein emphasize the importance of viewing bitcoin as a commodity. They believe that the timing is right for a turn in the cycle, and that bitcoin’s historical rally during previous halvings supports this view. As the amount of bitcoin received for mining is slashed during a halving, crypto miners are less inclined to sell their accumulated tokens, anticipating higher future prices. Bernstein notes that 70% of bitcoin tokens have not been sold in the last 12 months.
Additionally, the potential approval of spot bitcoin ETFs by the SEC is expected to drive further demand for bitcoin. While the SEC initially opposed such ETFs, a court ruling in August overturned the rejection of a Grayscale crypto ETF, potentially paving the way for regulatory approval. Bernstein predicts that US regulated ETFs will be a game-changer for the crypto market, with approval expected by late 2023 or early 2024. They estimate that the demand for bitcoin through ETFs will outstrip miner selling by 6-7 times at its peak, and that bitcoin ETFs will represent 9-10% of the circulating supply by 2028.
The analysts anticipate a rally in bitcoin leading up to the approval of ETFs, followed by profit-taking ahead of the halving event. They expect a “major inflection” in the price of bitcoin after the halving. This event will also have implications for the crypto mining industry, leading to consolidation as high-cost miners face increased pressure. Bernstein suggests that investors pay attention to two miners, Riot and CleanSpark, which have low power costs, high liquidity, and unlevered balance sheets. Both miners were given outperform ratings.
Overall, Bernstein’s analysis paints a positive picture for the future of bitcoin, projecting significant growth in the coming years. As the cryptocurrency market continues to evolve, these predictions provide valuable insights for investors and enthusiasts alike.