As crypto markets rebound in dramatic fashion, top analysts at Bernstein have flipped bullish on BTC and now Bernstein has revealed a $90k Bitcoin price prediction – how did they reach that figure? Find out here.
In a bullish move bolstering market confidence, investment firm Bernstein has raised their year-end Bitcoin price forecast from $80,000 to $90,000 for the end of 2024. Furthermore, the Bernstein analysts also predicted a total bull market cycle high of $150,000 by the end of 2025.
The announcement was revealed in a research report from Bernstein analysts Gautam Chhugani and Mahika Sapra, with the institutional analysts pointing to a confluence of factors fuelling their optimism.
Bernstein Bullish On Bitcoin And Mining Stock Ahead Of Halving
Predominantly Bernstein analysts pinpoint the bullish case for BTC in the substantial influx of cash flowing into spot Bitcoin ETFs – alongside aggressive expansion by leading Bitcoin miners – fuelled by record-high miner revenues.
Their bullishness also comes ahead of the Bitcoin halving, scheduled for late-April, in a pre-programmed event that will cut the rewards miners receive for processing transactions in half. Historically, reducing miner rewards, and thus, daily supply, has supported prices.
Stock-to-Flow 2020-2024 halving cycle: ~$50k
Stock-to-Flow 2024-2028 halving cycle: ~$500k
Stock-to-Flow 2028-2032 halving cycle: ~$5m
Yes, S2F = exponential growth, and it will continue IMO. pic.twitter.com/rH1KmIyKSl— PlanB (@100trillionUSD) March 18, 2024
However, with revenue slashed by 50% and more resources required to mine the same coins, halving often negatively impacts miners, forcing some to close operations. Accordingly, the hash rate, which is the total computing power dedicated to mining Bitcoin, tends to fall post-halving.
Aware of this possibility, the report encouragingly revised its prediction for the hash rate decline after April from 15% to a milder 7%.
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This four-year event might decrease Bitcoin miners’ revenue, but rising prices and transaction fees could make up for the loss. Subsequently, Bernstein remains bullish on the stock prices of some popular public Bitcoin miners in the United States, including Marathon Digital (MARA) and CleanSpark (CLSK).
The Bitcoin network rewards the successful miner with the block reward, currently set at 6.125 BTC, and all transaction fees associated with that block.
This fee varies depending on the number of transactions per block and the state of the network. During periods of high demand, transaction fees are generally higher. Therefore, this translates to higher transaction fees per block.
Bitcoin Prediction: Short-Time Frame Bitcoin Is Weak, GBTC Outflows Increasing
While the community expects prices to rise in the weeks and months ahead, Bitcoin faces headwinds on the short-time frame.
Despite a surge on Wednesday, buy pressure has yet to gain a grip over price action, with the move failing to push Bitcoin prices back towards $75,000.
The top coin remains suppressed in localized consolidation, with news of more outflow from the Grayscale Bitcoin Trust (GBTC) and fears of an expected pre-halving dip following the aggressive price recovery since October 2023. Overall, Bitcoin bulls appear exhausted.
From the Bitcoin daily chart, prices are flat below $68,000, with support at this week’s lows at around $61,000 – moreover, the coin is within a bear breakout formation below the 20 DMA following the sharp dip on March 19.
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In the days ahead, Bitcoin prediction suggests a conclusive break above all-time highs at about $73,737 forms the target for bulls, with such a move fuelling a further push to fresh levels – enticing more demand.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
