© Reuters Prepare for Bitcoin FOMO to spike to record levels – Bernstein
On Friday, Bitcoin crossed the $48,000 mark, recording a 13% increase over the past week and approaching the key $50,000 resistance level.
Despite a significant rebound in 2023, with a 160% increase, and maintaining resilience in 2024, current interest in Bitcoin has yet to reach the peaks seen in 2017 and 2021.
However, Bitcoin's best days are yet to come as the ETF-driven market fuels fears of missing out (FOMO), analysts at Bernstein said in a note. In this context, they believe that BTC is well positioned to reach new all-time highs.
Analysts noted that Bitcoin ETFs are becoming clear price catalysts for Bitcoin.
They see a significant decline in outflows from the Grayscale Bitcoin Trust, now down to around $50 million, while new ETFs have attracted close to $1 billion in the last two trading days.
This shift has noticeably improved market sentiment, and while the market reacted quickly to the news of ETF approval, it has yet to account for fund inflows and the impending supply shortage.
“We believe the money is still coming from 'believers', who have discovered an easy way to get Bitcoin into their broker accounts through ETFs,” the analysts said.
Meanwhile, the unbelievers continue to doubt. It seems that the initial interest in Bitcoin is coming from new investors who, although they have not invested yet, are interested in learning more about it.
Bernstein's initial forecast anticipated a rebound in Bitcoin's value after its halving. However, given the extraordinary success of the ETF launch (the best in 30 years) and the continued influx into ETFs, they now expect a major Bitcoin rally before the halving.
Therefore, those considering investing in Bitcoin mining companies and waiting to evaluate the post-halving risks are advised to choose their preferred companies now and hold their investments until the halving event. in April 2024, analysts commented.
Bernstein's top picks in this category are Riot Platforms (NASDAQ:) and clean spark (NASDAQ:).