Research firm Bernstein has stated that Bitcoin’s recent drop from its all-time high of over $73,000 to around $63,000 represents a good buying opportunity for those who bought in before the halving event in April.
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Bitcoin Correction is a Buying Opportunity
Maintaining a Target Price of $150,000
Positive Outlook for Mining Stocks RIOT and CLSK
Bitcoin Correction is a Buying Opportunity
The Block has quoted a Bernstein report, in which analysts Gautam Chhugani and Mahika Sapra believe that the cryptocurrency market is experiencing a similar consolidation before the Bitcoin halving and will continue the bull market thereafter.
The analysts stated in their report to clients:
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We believe that the current consolidation in Bitcoin is temporary and provides a buying opportunity before the halving. We expect to see a bull market for Bitcoin and the overall cryptocurrency market over an 18-month period.
Maintaining a Target Price of $150,000
The analysts mentioned the recent slowdown in Bitcoin ETF flows and the fluctuation of funds along with Bitcoin’s price movements.
Nevertheless, Bernstein maintains its previously predicted target price:
Given the significant inflows into Bitcoin ETFs following their approval on January 11, the recent trend is not surprising, and the correction seems healthy and does not affect our long-term view that Bitcoin will reach a cycle high of $150,000 in 2025.
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Wall Street investment bank Bernstein: More confident in Bitcoin’s potential to reach $150,000; Mining stocks poised for a major rebound
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Positive Outlook for Mining Stocks RIOT and CLSK
Continuing their previous perspective, the analysts believe that mining stocks will still be the best representation of Bitcoin, especially considering their underperformance in the first quarter of this year.
Bernstein specifically highlights Riot Platforms and CleanSpark. Despite the doubling of mining costs after the halving, both companies are expected to achieve gross profit margins of approximately 70% and 60% respectively, based on the current price of Bitcoin.
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Further reading:
SEC Delays Approval of Ark and Hashdex Ethereum Spot ETFs; Bloomberg Analyst No Longer Bullish on May Approval
Matrixport Recommends Shorting ETH; 10X Research Targets Bitcoin at $59,000.