Bernstein analysts see ‘low buying opportunity’ ahead of Bitcoin halving
Bitcoin 
BTC
-6.76%
The recent $10,000 decline from record highs of over $73,000 to around $63,000 represents a temporary “low buying opportunity” ahead of the April halving event, according to analysts at research and brokerage firm Bernstein.
“We believe that the current phase of Bitcoin consolidation is temporary and that investors should buy the dip ahead of the Bitcoin halving,” Bernstein analysts Gautam Chhugani and Mahika Sapra wrote in a note to clients on Tuesday. “I believe it presents an opportunity,” he wrote. “We continue to see an 18-month cross-cycle opportunity in Bitcoin and the entire cryptocurrency ecosystem.”
“We expect markets to consolidate prior to the halving and the overall bull market to continue thereafter,” they added.
Bitcoin halving is programmed to occur automatically every 210,000 blocks, or approximately every four years. The next halving event, expected on April 20, will see the reward subsidy for miners on the network decrease from 6.25 BTC to 3.125 BTC per block. However, you still earn additional transaction fees for each block mined.
US spot Bitcoin exchange-traded funds remain an important factor in the market. Grayscale’s converted GBTC fund recorded record daily outflows of $642.5 million on Monday, and yesterday recorded total net outflows of $154.4 million for the first time since March 1.
“ETF flows are reflexive: higher when prices are rising and slower when prices are falling,” Bernstein analysts note. However, historically Bitcoin’s price action has been solid ahead of halvings, and given the run-up to confirm the approval of the Bitcoin ETF and the rally following significant net inflows since its launch on January 11, the recent price action has not been the case. amazing. “The correction appears to be healthy and does not affect our cross-cycle view, namely that Bitcoin is headed toward a cycle high of $150,000 by 2025,” Chhugani and Sapra wrote.
Bitcoin price movement due to halving. Image: Bernstein.
According to The Block’s price page, Bitcoin is currently trading at $63,626. The cryptocurrency is down 7% in the last 24 hours and 12% over the past week. However, it remains at about 50% so far.
Bitcoin’s Path to $150,000
Last week, Bernstein argued that public mining stocks remain the best stock proxy for Bitcoin as the price of Bitcoin moves toward its 2024-2025 cycle target. Especially considering recent poor performance.
Analysts are focusing in particular on Riot Platforms and CleanSpark, noting that above current Bitcoin price levels (even with production costs doubling after the halving), miners will generate gross profit margins of around 70% and 60%, respectively. He said it would be. .
Later this week, Chhugani and Sapra predicted that the overall cryptocurrency market cap would reach $7.5 trillion by the end of 2025, with the Bitcoin and Ethereum ecosystems leading the way amid “unprecedented” institutional adoption. It was predicted that it could increase rapidly.
“We expect Bitcoin ($3 trillion by 2025), the Ethereum ecosystem ($1.8 trillion by 2025), and major blockchains ($1.4 trillion) such as Solana and Avax. The total leading cryptocurrency market capitalization is expected to reach $7.5 trillion by 2025. Now it’s $2.6 trillion. by 2025),” analysts said at the time. They claimed that blockchain gaming will be “the killer consumer app of this cycle” and that gaming tokens will grow into a $200 billion market.
Bitcoin market capitalization prediction. Image: Bernstein.
Analysts also began coverage of Robinhood stock with an outperforming rating, suggesting it is “riding the cryptocurrency comeback” as a higher beta play.
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