Wall Street Investment Bank Bernstein: More Confident in Bitcoin’s Rise to $150,000, Mining Company Stocks Set for Massive Rebound
Bernstein, a Wall Street investment bank, has stated that the possibility of Bitcoin reaching its target price of $150,000 by 2025 is increasing. They also predict that mining stocks will experience a rebound after the craze for spot ETFs.
Bernstein analysts believe that the price of Bitcoin will follow the pattern of previous cycles, rising after the halving of block rewards. They expect Bitcoin to reach a peak of $150,000 in mid-2025 during the cycle from 2024 to 2027.
The target price of $150,000 includes not only the halving factor but also the influx of funds into Bitcoin spot ETFs. However, Bernstein seems to have more confidence in the performance of mining stocks in the future and believes that they will experience a rebound.
Major US-listed mining companies such as Argo Blockchain, HIVE, Riot Platforms, Bit Digital, CleanSpark, Bitfarms, and Marathon Digital Holdings all experienced significant declines after the market opened on March 11.
Bernstein analysts Gautam Chhugani and Mahika Sapra state that as Bitcoin reaches new highs of $70,000, they expect institutional interest in Bitcoin stocks (spot ETFs) to wane, and Bitcoin miners will become the biggest beneficiaries. They believe that long-term trading by Bitcoin miners requires “more patience.”
Bernstein explains that with the emergence of Bitcoin ETFs, mining stocks are no longer seen as an indirect way to invest in Bitcoin. Therefore, spot ETFs have been performing well recently, while mining stocks have not kept up with the rise in Bitcoin.
Furthermore, in the trading idea of “going long on Bitcoin ETFs and shorting mining stocks,” ETFs have an advantage over mining companies facing uncertain halvings.
Bernstein analysts explain that the main traders of mining stocks are still retail investors, and institutional investors generally stay away from indirect investments in Bitcoin and still have biases towards Bitcoin.
Lastly, Bernstein emphasizes that even though the halving of Bitcoin means that mining costs will double, the increase in Bitcoin prices and transaction fees can provide a buffer for mining companies.
