Bitcoin (BTC) achieved a record-breaking price of approximately $73,750 on March 14. Despite a slight decline since then, analysts at Bernstein believe that the cryptocurrency’s upward trend is far from over. They maintain their prediction that Bitcoin could reach $150,000 in this cycle and expect the upward trend to continue until the end of 2025.
In a note to their clients, Bernstein analysts Gautam Chhugani and Mahika Sapra expressed confidence in their prediction, stating, “We are even more confident in this forecast as BTC metrics indicate that a healthy bull cycle is still in its early stages. The risk-reward ratio remains attractive.”
The analysts noted that the recent correction to around $57,000 effectively cleared excessive leverage in cryptocurrency exchange futures contracts.
Furthermore, the analysts highlighted a positive development in the US, where spot Bitcoin exchange-traded funds (ETFs) saw a reversal in net inflows after eight consecutive days of outflows. Grayscale’s converted spot ETF, GBTC, registered a net inflow of $63 million on May 3, following a 78-day outflow streak. This is significant considering that GBTC has been a consistent source of sales, and nine new spot ETFs had to absorb this.
The Bernstein analysts also emphasized that the strong inflows into spot Bitcoin ETFs over the past three months can be attributed to institutional purchases of BTC, a stable hashrate following the block reward halving, and healthy transaction fees post-halving. These factors have supported and continue to support strong inflows into spot Bitcoin ETFs.
It is important to note that the information provided in this article does not constitute investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and should conduct their own research.
