Analysts at Wall Street brokerage major Bernstein reportedly believe that Bitcoin (BTC) will soar to the $70,000 range by the end of the year.
According to a new report from StreetInsider, analysts Gautam Chughani and Mahika Sapura say in a new research note that the impact of the recently approved Spot BTC exchange-traded fund (ETF) has caused market cap prices to soar. said that the top crypto assets will be the driving force.
“In a commodity with a known finite supply curve, an increase in purchase demand of this size will feed into prices. Although present on exchanges, it is the net incremental demand that is important, given that selling pressure is easy to model.
Bernstein analysts also believe that U.S. Bitcoin mining companies can expand their operations this year, despite the crypto tycoon’s halving event scheduled for April. Your reward will be halved.
“In the upcoming halving, we expect 15% of high-cost miners to reduce production, but we expect low-cost, competitive miners to gain relative share (RIOT and CLSK (This is our preferred candidate.)
Chhugani and Sapra also predict that the development of Bitcoin’s Layer 2 protocol will improve the overall efficiency of the network.
“We also believe that as the Bitcoin developer ecosystem grows, Layer 2 will continue to drive transaction revenue for miners and economic activity from token mints and NFT (non-fungible tokens) ordinals will be maintained. I look forward to that.”
Furthermore, the macroeconomic situation this year could be favorable for flagship digital assets.
“If early election trends suggest a change of government after the election and the current (crypto-unfavorable) leadership of the SEC (U.S. Securities and Exchange Commission) could change, Bitcoin and the broader Cryptocurrency markets could rebound following those cues, and interest rates could rise, adding further fuel to the rally. ”
At the time of writing, Bitcoin is trading at $44,139.
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Disclaimer: The opinions expressed on The Daily Hodl do not constitute investment advice. Investors should perform due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that transfers and transactions are made at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets. The Daily Hodl is also not an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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