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Bernstein raises new bitcoin price all-time high prediction for 2024

Analysts at the firm increased their projection for 2024 despite a slumping bitcoin price in recent days.

The price of bitcoin may spike to $90,000 by the end of the year, with the upcoming bitcoin halving in April having marginal impact on the price of the world’s leading cryptocurrency, research firm Bernstein said in a new research note.

Analysts at the firm increased their price prediction for bitcoin by $10,000, predicting  a climb from $80,000 to $90,000. 

Bernstein expects 2025 to see bitcoin jump all the way to $150,000, based on ongoing positive price momentum for the world’s top cryptocurrency after the U.S. Securities and Exchange Commission’s approval in January of several spot bitcoin exchange-traded funds (ETFs). The new funds give investors a new opportunity to invest in exposure to the world’s leading digital asset without needing to self-custody.

Bitcoin’s price has soared in recent weeks, breaking an all-time high of more than $73,000earlier this month. Its recent plunge below $63,000, however, has emerged as a prime “dip buying opportunity” for investors, according to the research firm.

In April, bitcoin will experience its quadrennial bitcoin halving, which will see the subsidy of newly-issued bitcoin sent to successful miners slashed from 6.25 bitcoin to just 3.125 bitcoin, ultimately resulting in financial challenges for some mining companies.

While the typical drop in the bitcoin network’s hash rate after the halving has historically been 15% to 20%, Bernstein estimated that this year’s halving will see just a 7% reduction – a boon for crypto mining firms operating with low overhead costs.

The analysts pointed out that several crypto mining firms could become insolvent or be required to merge, but that the broader industry would stay buoyant: “We expect the market to consolidate prior to the halving and then expect the overall bull markets to continue,” Bernstein analysts said.

“Given general bull market conditions with strong ETF inflows, low miner leverage, and robust network transaction fees this cycle, the halving impact seems relatively mild on the miners, with dollar revenues cushioned,” Bernstein analysts Gautam Chhugani and Mahika Sapra said.

Source: thestreet.com

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Disclaimer: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.


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