Bernstein believes $80,000 is not bullish enough for Bitcoin considering the halving effect and has now raised the asset’s yearly target to $90,000.
According to a report on Thursday, the renowned investment research and management company Alliance Bernstein has adjusted its annual Bitcoin target from $80,000 to $90,000, citing the rising influence of the Bitcoin halving.
Despite Bitcoin’s decline from its recent all-time high on March 14th, Bernstein remains optimistic, raising its year-end forecast by 12.5% ($10,000). The firm believes in the long-term bullish impact of Bitcoin’s halving on its price and sees it outperforming its previous speculations.
Bernstein has also adjusted its price targets for crypto mining stocks: the firm raised CleanSpark’s target to $30 from $14.20, lowered Riot Platforms’ target to $22 from $22.50, and raised Marathon Digital’s target to $23 from $14.30. The report stated that Bernstein sees CleanSpark and Riot Platforms becoming the “largest miners with the largest self-mining capacity.”
Bernstein Boosts Its Outlook on Crypto Mining
Bernstein is feeling more optimistic about cryptocurrency mining stocks. This change comes as Bitcoin’s move to $73,000 saw mining stocks surge considerably. The firm is more optimistic about mining stocks because they have improved their capacity to prepare for the halving. Bernstein also cited the incessant inflow through US ETF products and increasing mining dollar revenue in its reconsideration.
“With a new bitcoin bull cycle, strong ETF inflows, aggressive miner capacity expansion, and all-time high miner dollar revenues, we continue to find bitcoin miners compelling buys for equity investors seeking exposure to the crypto cycle,” analysts Gautam Chhugani and Mahika Sapra wrote.
The analysts, Gautam Chhugani and Mahika Sapra, highlighted several factors contributing to their positive outlook on bitcoin miners. They believe these factors collectively make bitcoin miners attractive investments for equity investors seeking exposure to the cryptocurrency market cycle.
What Happens After the Halving?
With the Bitcoin halving approaching, the enthusiasm surrounding the top cryptocurrency continues to grow. With optimistic predictions from prominent investment firms such as Alliance Bernstein and significant investment pouring into newly approved Bitcoin ETFs, Bitcoin seems poised to soar to remarkable new levels.
Though Bitcoin has experienced a lengthy price correction since March 19th, Bernstein has remained optimistic that the crypto asset will reach new heights post-halving. Alliance Bernstein’s new Bitcoin price prediction correlates with speculation from other top analysts who see the asset hitting six figures after the event in April.
Bernstein also updated its prediction regarding the drop in hash rate following the upcoming Bitcoin halving event in April. Initially, it anticipated a 15% decrease, but it now expects a smaller decline of 7%. Bernstein’s adjustment implies a lesser impact post-halving, indicating it foresees fewer shutdowns and less consolidation among miners than previously thought.
