Bernstein predicts that by year’s end, bitcoin will reach $90,000
Bernstein raised Bitcoin’s year-end target price by a whopping $10,000 to $90,000, indicating that the cryptocurrency is well-positioned to outperform in the near future.
This significant change upward from the prior objective of $80,000 suggests that Bitcoin is in an optimistic bull cycle, partially due to a less significant decline in hash rate than predicted after the halving event.
The hash rate, which gauges the total amount of processing power utilized for mining and processing transactions on blockchains, was initially predicted by analysts to drop by 15%.
However, new research indicates that the drop will probably only be about 7%.
These trends are supported, by a number of variables, such as the beginning of a new Bitcoin bull cycle, notable investments in exchange-traded funds (ETFs) connected to Bitcoin, an increase in mining capacity, and historically high levels of miner revenue.
According to ETHNews, Bernstein analysts Gautam Chhugani and Mahika Sapra believe that equity investors who want to capitalize on the cryptocurrency cycle would find Bitcoin miners to be attractive investments.
In light of the potential effects of the quadrennial halving event that is anticipated in mid-April, Bernstein has also updated its projections for Bitcoin mining stocks. The main purpose of this change is to control Bitcoin inflation, which has an immediate effect on mining profitability.
These modifications also demonstrate that Bitcoin is still the dominant cryptocurrency. Riot and CleanSpark are now recognized as prominent participants in the industry, with a strong mining capability.
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