Bernstein sees the price of Bitcoin reaching $150,000. In a note to clients this week, the company asked investors to buy Bitcoin mining tools because the recent poor performance “may be the last window before the halving.”
As the cryptocurrency continues to rise, currently trading above $72,000, the company recalled the words of Satoshi Nakamoto, who told another forum member discussing Bitcoin in 2010 that, “If you don't understand it, I don't have time to analyze it.” So try to be convinced.”
According to analysts at Bernstein, Bitcoin miners remain the best proxy for stocks to participate in the rally.
“We are now more convinced about a Bitcoin price of $150,000,” they said.
“Today the price of Bitcoin is $71,000, and we expected it to break through this price after the halving. We built institutional inflows of Bitcoin into our estimates to arrive at the price of Bitcoin. We estimated inflows of $10 billion USD for 2024 and another $60 billion for 2025. In the latest 40 trading days after the launch of the ETFs on January 10, inflows from Bitcoin ETFs have already exceeded $9.5 billion.”
Also, analysts believe that these are still the early days of integrating Bitcoin into traditional asset portfolios.
They added: “Investors only look at the daily correlation between Bitcoin miners, and only during the days they see Bitcoin rising.” “This selective cyclical view is incomplete. During the cycle, Bitcoin miners always outperform Bitcoin during bull markets and always underperform Bitcoin during bear markets.”
“Investors have to look at the cycle, and for us, we are still halfway into the 2024-2025 cycle and see every window of weakness in mining companies as a buying opportunity,” the analysts added.
Bernstein also believes that Bitcoin prices and transaction fees provide a cushion for miners in the halving event, while Bitcoin mining stocks are cheap.
