Key Points
- Bernstein analysts maintain their prediction of Bitcoin’s price reaching $150,000 in this cycle.
- The recent reversal of outflows in spot Bitcoin ETFs is seen as a positive sign for Bitcoin’s potential price rise.
The crypto market is buzzing with optimism about the potential for Bitcoin (BTC) to reach a new all-time high soon.
Despite a recent dip from its March peak of over $73,000, Bitcoin’s current trading price of $65,214.59, reflecting a 2.57% increase in the last 24 hours, hasn’t dampened bullish sentiments.
Unwavering Confidence in Bitcoin’s Potential
Analysts at Bernstein are undeterred by the recent price fluctuations. They’ve reaffirmed their belief that Bitcoin could reach $150,000 in this cycle.
Gautam Chhugani and Mahika Sapra, the analysts, cited several reasons for their unwavering faith in Bitcoin’s potential.
They believe that Bitcoin’s metrics indicate a healthy cycle and that the risk-reward ratio remains attractive.
The two first shared their optimistic prediction in mid-April, days before the halving event. They believe that the halving event and the stabilization of the mining hash rate were necessary for Bitcoin to resume its bullish trajectory.
They anticipate that Bitcoin will reach this price target by the end of 2025.
Despite Bitcoin’s price not seeing a significant increase since the halving, and even experiencing bearish fluctuations, the analysts believe that the recent correction to roughly $57,000 has effectively cleared the excess leverage on futures contracts on crypto exchanges.
Spot Bitcoin ETFs See Inflows
Chhugani and Sapra have also noted the reversal in the trend of spot Bitcoin ETFs, which were registering outflows a few days ago.
These products, approved by the United States Securities and Exchange Commission (SEC) in January, have started seeing inflows after eight consecutive days of outflows.
Notably, Grayscale’s GBTC recorded $63 million in inflows on Friday after about 80 consecutive days of significant outflows.
They believe this shift in ETF inflows is a temporary pause and that an increase in overall spot Bitcoin ETF inflows will significantly contribute to pushing Bitcoin’s price to the potential $150,000 level.
Other potential catalysts for Bitcoin’s price increase include encouragement for corporate treasuries to buy Bitcoin, a steady post-halving hash rate, healthy post-halving transaction fees, and subdued prices for Bitcoin mining equipment.
