Analysts at Bernstein, one of the world's leading asset management companies, have raised their year-end target price for Bitcoin (BTC) from $80,000 to $90,000 due to the improvement of the cryptocurrency market.
The analysts predict that Bitcoin will reach a high of $150,000 between 2024 and 2025.
On the 21st, Bernstein analysts Gautam Chhugani and Mahika Sapra wrote in a client report that "Given the current general bull market conditions, including strong inflows into Bitcoin spot ETFs, low miner leverage, and robust network transaction fees, the impact of the halving on miners appears to be relatively mild."
Bitcoin's fourth halving is estimated to occur around mid-April. This halving will halve the miner reward from the current 6.25 BTC to 3.125 BTC. This is expected to lead to the withdrawal of less profitable miners.
Bitcoin's hash rate decline after the halving has previously ranged from 15 to 20%. However, Bernstein analysts estimate the hash rate decline to be around 7%. They estimate that this time, miners will withdraw less than expected because the bull market has strengthened the balance sheets of mining companies.
The analysts expect this halving to "benefit low-cost miners the most, allowing them to gain relative market share after the halving."
In addition, they pointed out that mining companies Riot and CleanSpark may emerge as the largest miners with the most mining capacity. In addition, they also said that MarathonDizital may emerge given the high liquidity, etc. Analysts also said that Bitcoin's drop from an all-time high of around $73,000 to below $63,000 provides a "buying opportunity" just before the halving. "We expect the market to calm down before the halving, and the overall bull market to continue afterwards."
Reference: Press
Image: Shutterstock
Related articles
Coinbase analyzes Bitcoin halving price, sounds warning in light of current market conditions
Bitwise predicts Bitcoin price to "exceed 10 million yen" in 2024