Bernstein, a Wall Street investment bank, has stated that the possibility of Bitcoin reaching its target price of $150,000 by 2025 is increasing. They also predict a rebound in mining stocks after the hype surrounding spot ETFs.
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Bernstein: Increasing Confidence in Bitcoin Reaching $150,000 Next Year
Mining Stocks Experience a Significant Decline
Mining Companies to Experience a Large-scale Rebound
Bernstein: Increasing Confidence in Bitcoin Reaching $150,000 Next Year
Bernstein analysts have reiterated their belief that the price of Bitcoin will follow the pattern of previous cycles, which saw an increase after the halving of block rewards every four years. They expect Bitcoin to reach a peak of $150,000 in mid-2025 during the cycle from 2024 to 2027.
The target price of $150,000 includes not only the halving factor but also the inflow of funds from Bitcoin spot ETFs. However, Bernstein seems to have a more positive outlook on the performance of mining stocks in the future, seeing them as a potential opportunity for a rebound.
Mining Stocks Experience a Significant Decline
Major publicly traded mining companies in the United States, including Argo Blockchain, HIVE, Riot Platforms, Bit Digital, CleanSpark, Bitfarms, and Marathon Digital Holdings, all experienced a significant decline in their stock prices after the opening on March 11.
Mining Companies to Experience a Large-scale Rebound
Bernstein analysts Gautam Chhugani and Mahika Sapra state that as Bitcoin reaches new highs of $70,000, they expect institutional interest in Bitcoin stocks (spot ETFs) to gradually fade, and Bitcoin miners will become the biggest beneficiaries. They believe that long-term trading in Bitcoin mining requires “more patience.”
Bernstein suggests that with the emergence of Bitcoin ETFs, mining stocks are no longer seen as an indirect way to invest in Bitcoin. Therefore, while spot ETFs have been performing well recently, mining stocks have not been favored by investors and have not kept up with the rise in Bitcoin.
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Are Mining Stocks Being Replaced? Research Institutions: Investors Are Going Long on Bitcoin ETFs and Shorting Mining Stocks
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Furthermore, in the trading idea of “going long on Bitcoin ETFs and shorting mining stocks,” ETFs have an advantage over mining companies, which face uncertainties due to halving. Bernstein analysts explain that the main traders of mining stocks are still retail investors, and institutional investors are generally reluctant to invest indirectly in Bitcoin and still have biases against it.
Finally, Bernstein emphasizes that although the halving of Bitcoin means that mining costs will double, the increase in Bitcoin price and transaction fees can provide a buffer for mining companies.
Bernstein
Bitcoin
Mining Companies
Further Reading:
CoinGecko’s Institutional Market Prediction: Bitcoin Consensus Average Price of $87,000 After Halving
Bernstein Report: Bitcoin to Rise to $150,000 by 2025, Bullish on Mining Companies RIOT, CLSK