Some funds and analysts are now predicting a potentially faster than expected growth for Bitcoin. Bernstein’s experts in particular have revised their already optimistic outlook for the leader in cryptocurrency.
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AllianceBernstein adjusts its forecast upward
Analysts at Alliance Bernstein (a financial titan with $725 billion in their custody) have just thrown a wrench into the pond.
Until now, his optimism on Bitcoin was already making headlines with a prediction of $150,000 in 2025. But now, hold on: They’ve raised their forecast for the end of 2024 from $80,000 to $90,000. Yes, you read that right.
This revaluation represents a significant vote of confidence for the future of the cryptocurrency leader. This prediction, being purported, raises interesting questions about the perception of Bitcoin’s value in the global financial context, inviting reflection on its potential role in future investment strategies.
Bitcoin mining companies, good choice for investors
Bernstein also believes that bitcoin mining companies are an attractive option for those looking to invest in the emerging cryptocurrency market.
According to analysts Gautam Chugani and Mahika Sapra: “ Bitcoin mining companies are a very attractive buy for stock investors looking for exposure to the new cryptocurrency bull cycle.“
“With the new bull run With strong inflows into BTC Spot ETFs, aggressive expansion of miner capacity, and miner dollar income at an all-time high, we continue to think that Bitcoin mining companies are very interesting buys for stock investors looking to gain exposure to the new crypto bull cycle. . »
Gautam Chugani and Mahika Sapra, analysts at AllianceBernstein
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Reduced halving effect on hashrate
Gautam Chugani and Mahika Sapra have shown renewed faith in Bitcoin and mining companies.
This assertion is based on his interpretation of a halving, an event expected in late April in the Bitcoin blockchain network, which he estimates will have a moderate impact on the computing power, or hashrate, deployed by miners.
Traditionally, each mine halves the reward given for the block. This year, it will go from 6.25 to 3.125 bitcoins. This drop in revenue could theoretically force the least efficient miners to idle their equipment, affecting the overall hashrate.
According to Bernstein, this reduction in power will prove to be less drastic than previously expected, suggesting the mining sector’s unexpected resilience in the face of the economic challenges inherent in the halving.
Regarding this last point, AllianceBernstein expects a 7% drop in hashrate due to the decommissioning of certain obsolete mining equipment after the halving, compared to the 15% previously estimated.
This less pessimistic view of hashrate is conducive to the stability and security of the Bitcoin network.
