Bitcoin could be poised for even greater gains after a strong start to the year after analysts at Bernstein predicted a bullish end to the year for the world’s largest cryptocurrency.
The financial services firm has cited several bullish factors influencing the flagship cryptocurrency and driving its price to $90,000 by the end of the year.
Bernstein’s Bitcoin Prediction
According to a research note, analysts at Bernstein have raised their year-end prediction for Bitcoin from $80,000 to $90,000, citing several bullish factors. According to the report, a new Bitcoin bull cycle is underway, being fueled by strong inflows into the newly launched spot Bitcoin ETFs, an aggressive expansion of mining capacity, and record-breaking revenue for miners. Analysts Gautam Chhugani and Mahka Sapra stated in their report,
“With a new bitcoin bull cycle, strong ETF inflows, aggressive miner capacity expansion, and all-time high miner dollar revenues, we continue to find bitcoin miners compelling buys for equity investors seeking exposure to the crypto cycle.”
They noted that Bitcoin miners remain a compelling buy for equity investors looking for exposure to the crypto cycle and revised their estimates for cryptocurrency mining stocks. The analysts had also predicted a 15% reduction in hashrate prompted by shutdowns following the Bitcoin halving event. However, based on current conditions, this has been revised to a 7% reduction in hashrate.
“We assume a 7% reduction in hashrate post halving from shutdowns versus 15% earlier.”
The hashrate typically registers a dip after a halving event as some miners become unprofitable following a reduction in rewards.
A Monster Cycle
Bernstein is anticipating a “monster cryptocurrency market cycle” and has forecasted the crypto market’s total market capitalization to increase to $7.5 trillion by 2025, nearly triple its current value of $2.53 trillion. Bernstein’s bullish outlook also includes individual cryptocurrencies. For example, Bitcoin’s market cap is set to increase from its current $1.31 trillion to $3 trillion by 2025. Based on this prediction, Bitcoin’s price could be set to double by next year to $150,000.
Ethereum’s market capitalization is also predicted to hit $1.8 trillion, a significant increase from its current level of $422 billion. This would see Ethereum cross the $10,000 mark from its current level and trade around the $15,000 mark.
Other Predictions
In other predictions, Bernstein changed its price target for CleanSpark (CLSK) from $14.2 to $30. The CLSK stock registered an increase of 2.6% on Thursday to continue its impressive weekly and year-to-date gains. However, it lowered its outlook for Riot Platforms from $22.50 to $22. Riot Platform’s (RIOT) stock price tumbled by 3% on Thursday and has fallen by 12.5% over the past month. Bernstein maintained a neutral outlook on Marathon Digital (MARA) but raised its price target for the stock from $14.3 to $23.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
