Bitcoin (BTC) reached a record high of around $73,750 on March 14, and although it has since decreased slightly, analysts at Bernstein believe that the cryptocurrency’s upward trend is far from over. The analysts reaffirmed their prediction that Bitcoin could reach $150,000 in this cycle and that the upward trend will continue until the end of 2025.
Bernstein analysts Gautam Chhugani and Mahika Sapra stated in a note to their clients that they are confident in their call and that BTC metrics indicate a healthy bull cycle that is still in its early stages. They emphasized that the risk-reward ratio remains attractive, especially after the recent correction to around $57,000, which cleared excessive leverage in cryptocurrency exchange futures contracts.
In addition, analysts highlighted the positive flows in spot Bitcoin exchange-traded funds (ETFs) in the US. After eight consecutive days of outflows, spot Bitcoin ETFs saw net inflows. Grayscale’s converted spot ETF, GBTC, registered a net inflow of $63 million on May 3, ending a 78-day outflow streak. This is seen as a significant development, considering GBTC has been a major source of sales, and the influx had to be absorbed by nine new spot ETFs.
The Bernstein analysts also pointed out that the strong inflows into spot Bitcoin ETFs over the past three months can be attributed to institutional purchases of BTC, a stable hashrate following the block reward halving, and healthy transaction fees post-halving. These factors continue to support the strong inflows into spot Bitcoin ETFs.
It is important to note that the information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.