Bitcoin (BTC) price hit a record high of approximately $73,750 on March 14th, and although it has since retraced, analysts at Bernstein believe that the cryptocurrency’s upward trend is far from over. The analysts reiterated their prediction that Bitcoin could reach $150,000 during this cycle and that the upward trend will continue until the end of 2025.
In a note to their clients, Bernstein analysts Gautam Chhugani and Mahika Sapra stated, “We feel even more confident about this call and BTC metrics indicate a healthy bull cycle that is still in its early stages,” and added that “the risk-reward ratio remains attractive.” They highlighted that the recent correction to around $57,000 helped clear excessive leverage in cryptocurrency exchange futures contracts.
In addition, analysts pointed out that spot Bitcoin exchange-traded funds (ETFs) in the US saw a reversal in net inflows after eight consecutive days of outflows. Grayscale’s converted spot ETF, GBTC, recorded a net inflow of $63 million on May 3rd, ending a 78-day outflow streak. This was 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 analysts at Bernstein also noted 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 have supported and continue to support the strong inflows into spot Bitcoin ETFs.
Disclaimer: The information in this article should not be taken as investment advice. Investors should be aware of the high volatility and risk associated with cryptocurrencies and should conduct their own research.
