On Tuesday, analysts at Bernstein Research, a top Wall Street sell-side research and brokerage firm, proposed that Bitcoin could rise to $150,000 by mid-2025, a 337% increase, as the world's largest cryptocurrency enters a new market cycle.
#etf Research released a report covering crypto companies, suggesting that BTC may be ushering in major changes in the industry market, including the upcoming BTC halving event and the approval of the first ETF. #BTC🔥🔥
The report was published by a team led by Gautam Chhugani, senior analyst at Global Digital. The report emphasizes the importance of choosing the right time to invest, and even if some investors have reservations about Bitcoin, they should look at it objectively as an asset. According to the analysis in the report, BTC's history shows that its price rises every time a "halving" event occurs. The halving event is a regular event in the BTC network, which occurs every four years and causes the number of BTC rewarded by WK to be halved. The next halving event is expected to occur in April 2024.
The halving event actually reduces the supply of BTC, encouraging workers to hold on to their W tokens in anticipation of future price increases. The report states that 70% of BTC tokens have not been sold in the past 12 months.
At the same time, BTC is experiencing increased demand from new buyers, especially against the backdrop of the SEC’s upcoming approval of the first spot BTC ETF. Although the SEC initially tried to block the approval of such an ETF, its application for the Grayscale ETF was rejected in August, paving the way for changes in regulatory policy.
The report states: “We expect U.S. regulatory approval of a BTC ETF to be a watershed moment for the cryptocurrency market, and we expect the SEC to approve it in late 2023 or early 2024. After the halving event, we expect ETF demand to exceed worker selling demand by 6-7 times at peak times. By 2028, BTC ETFs will account for 9-10% of the total BTC supply.”
Analysts expect that BTC prices will rise following the approval of the Bitcoin spot ETF, and then there may be some profit-taking ahead of the halving event, followed by a "major turning point." The reduction in BTC supply caused by the halving event, coupled with the additional demand introduced by ETFs, is expected to see a significant increase in BTC prices.
In addition, the halving event will also have an impact on the crypto industry, possibly leading to more industry consolidation. As rewards decrease, higher-cost workers will face greater pressure, while less efficient workers may find it difficult to maintain.
