Key Points
- Bitcoin’s recent drop in price is seen as a temporary dip buying opportunity ahead of the halving event, according to Bernstein analysts.
- The analysts anticipate Bitcoin reaching a cycle high of $150,000 by 2025.
Bitcoin’s recent drop from record highs of over $73,000 to around $63,000 is seen as a temporary opportunity to buy at a lower price ahead of the upcoming halving event in April, according to Bernstein analysts Gautam Chhugani and Mahika Sapra.
Bitcoin Halving Event
Bitcoin halvings, which are programmed to occur every 210,000 blocks or approximately every four years, will see the reward for miners on the network drop from 6.25 BTC to 3.125 BTC per block. However, miners will continue to earn additional transaction fees for each block mined.
The role of U.S. spot bitcoin exchange-traded funds (ETFs) remains significant in the market. Grayscale’s converted GBTC fund saw record daily outflows of $642.5 million, leading to a total net outflow of $154.4 million for the first time since March 1.
Bitcoin’s Path to $150,000
The Bernstein analysts believe that the recent correction in Bitcoin’s price is healthy and does not affect their view that Bitcoin will reach a cycle high of $150,000 by 2025.
Bernstein analysts also suggested that public miner stocks remain the best equity proxy to Bitcoin as its price heads toward their 2024-2025 cycle target. They highlighted Riot Platforms and CleanSpark as particularly profitable, even if their production costs were to double after the halving.
The analysts also projected the overall crypto market cap could surge threefold to $7.5 trillion by the end of 2025, led by Bitcoin and Ethereum ecosystems amid “unprecedented” institutional adoption.
They also initiated coverage on Robinhood stock with an outperform rating, suggesting it was “riding on the crypto comeback arc” as a higher beta play.
