Bernstein confirms Bitcoin forecast of $150,000.

Bernstein confirms Bitcoin forecast of $150,000.

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Author: Robert Strickland (crypto-journalist)
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Bernstein confirms Bitcoin forecast of $150,000.

Experts from Bernstein have confirmed the forecast for Bitcoin at $150,000.


 

The experts have identified key factors contributing to Bitcoin's growth in the near term.

 

Bernstein confirms Bitcoin forecast of $150,000. Experts from Bernstein have confirmed the forecast for Bitcoin at $150,000. The experts have identified key factors contributing to Bitcoin's growth in the near term.

Despite a more than 10% decrease from its price peak of $74,000, Bitcoin, according to analysts at Bernstein brokerage company, has not yet "exhausted itself" and still retains growth potential. The bank's experts reaffirmed their previous forecast of Bitcoin reaching $150,000 by the end of 2025.

The Bitcoin-to-USDT stablecoin exchange rate on the Binance cryptocurrency exchange rose above $65,000 on May 6. At 13:20 MSK, the price of Bitcoin stands at $65,270 with a market capitalization of $1.2 trillion. Within a day, the leading cryptocurrency has appreciated by approximately 2.2%.

"Market indicators show that the current Bitcoin cycle has only just begun," wrote Bernstein experts in a note, adding, "The risk-to-reward ratio remains attractive."

According to analysts, Bitcoin's recent drop to a local minimum around $57,000 has cleared the market of excessive futures contract leverage.

Among the factors driving Bitcoin's growth, experts cited a significant inflow of funds into Bitcoin exchange-traded funds (ETFs) since their launch in January. By early May, Bitcoin ETFs had accumulated 821,000 Bitcoins under management, representing 4.1% of all circulating coins valued at $51 billion.

Bitcoin exchange-traded funds have resumed growth after eight days of investor outflows. According to SoSo Value data, on Friday, May 3, net inflows into ETFs amounted to $378 million. Grayscale's GBTC fund recorded a net inflow of $63 million after a 78-day streak of outflows.

Bernstein experts note a stable level of the total computational power used for Bitcoin mining—the Bitcoin network's hash rate. The average Bitcoin hash rate at the current difficulty level stands at 607.47 EH/s, slightly below the previous peak of 650.29 EH/s set one day before the halving on April 19.

Galaxy Digital estimates that by the end of 2024, the total network hash rate will range from 675 EH to 725 EH. Experts attribute the hash rate increase to the deployment of next-generation mining devices.

Transaction fees are also at a "healthy" level after the latest halving, indicating network stability. Additionally, Bitcoin mining equipment prices have decreased, making mining more accessible to new players.

Halving is traditionally positioned as a bullish factor for the cryptocurrency market. The reduction in cryptocurrency emission rates amidst growing demand from exchange-traded funds could lead to price increases.

However, halving may pose significant challenges for miners whose operating expenses exceed a certain threshold. The reduction in rewards could render their operations unprofitable if the Bitcoin price does not rise sufficiently to compensate for the loss of income.

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