© Reuters Bernstein is increasingly convinced that the price of Bitcoin is heading towards $150,000
Bernstein predicts that the price of Bitcoin will reach $150,000. In a note to clients this week, the company told investors to buy Bitcoin miners as the recent underperformance “is likely the last window before the halving.”
As the cryptocurrency continues to recover, currently trading above the $72,000 mark, the firm recalled the words of Satoshi Nakamoto, who told another forum member debating Bitcoin in 2010: “If you don't understand it, you don't “I have time to try to convince you.”
According to Bernstein analysts, Bitcoin miners remain the best stock proxy to participate in the rally.
“We are now more convinced of our price of $150,000 per Bitcoin,” they said. “Bitcoin today is at $71k, we expected this to break after the halving. We built institutional Bitcoin flows into our estimates to arrive at the Bitcoin price. We estimate inflows of $10 billion by 2024 and another $60 billion by 2025. In the last 40 trading days since the ETF's launch on January 10, Bitcoin ETF inflows have already exceeded $9.5 billion.”
Analysts believe these are still the early days of Bitcoin integration into traditional asset portfolios.
When it comes to miners, the company prefers Riot Platforms (NASDAQ:) and clean spark (NASDAQ:) based on the fact that they are the “largest 'self-mining' miners”, reducing hash rate capacity by half, they have the lowest production cost within the universe listed by Bernstein, and as Bitcoin remains on its balance sheets with no debt.
“Investors simply look at the daily correlation of Bitcoin miners, only during the days when they see Bitcoin recover,” they added. “This selective periodic view is incomplete. Over the cycle, Bitcoin miners almost always outperform Bitcoin during bull markets and almost always underperform Bitcoin during bear markets.”
“Investors need to take a long-cycle view and, for us, we are still halfway through the 2024-25 cycle and see every window of mining weakness 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.
