Bernstein Sees Bitcoin Reaching $150,000

Global asset management firm Bernstein is increasingly confident that Bitcoin's price can hit the $150,000 mark. 

In a recent note to its clients, Bernstein pointed to the current bullish trend on Bitcoin's market, which is trading above $72,000. It has urged investors to consider purchasing Bitcoin miners. 

The firm believes that the recent dip in Bitcoin miner stock represents a valuable investment opportunity before the upcoming halving event, which is expected to further drive up the price of the flagship coin.

Reason behind bullishness  

Bernstein's analysis points to Bitcoin miners as the most viable equity option for participating in the ongoing rally. 

The firm's analyst, Gautam Chhugani, expressed strong conviction in Bitcoin reaching the $150,000 target. 

Related

Tue, 03/12/2024 - 13:37

Bitcoin Spot ETFs Near $60 Billion in Net Assets Amid Heavy Trading

Mushumir Butt

This optimism is backed by substantial inflows into Bitcoin, particularly highlighted by the $9.5 billion that flowed into Bitcoin ETFs within 40 days of their launch in January. 

Chhugani sees this as just the beginning of Bitcoin's integration into mainstream investment portfolios. It anticipates further institutional investment following the halving.

Historical context

Bernstein's prediction of Bitcoin reaching $150,000 is not sudden; it was first mentioned in October 2023 when Bitcoin was trading at around $34,400. 

As reported by U.Today, Bernstein's prediction also relies on the historical price-to-marginal cost ratio of Bitcoin, which has proven to be a reliable indicator of its market value. This metric reflects the profitability margin for miners and helps gauge overall market sentiment. 

With past cycles showing substantial returns above marginal cost, Bernstein anticipates a similar trend, leading to their mid-2025 price target of $150,000.