- Bernstein said institutional demand driven by Bitcoin ETFs will lead to “new highs in 2024.”
- With the halving just a few months away, the performance of Bitcoin miners is attracting attention.
- The brokerage said the sector is poised to soar and named two important mining stocks for investors to gain exposure to.
Buy Bitcoin and its miners.
So says investment firm Bernstein in its latest investor report.
“Most U.S.-listed miners appear to be relatively well-positioned” heading into Bitcoin’s so-called halving event, the report said.
During the halving, scheduled for April 20th, the Bitcoin network will cut the rewards it gives miners in half.
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Miners receive a reward (6.25 Bitcoin today) for maintaining the network and validating transactions.
These organizations are essentially expected to continue doing the same work for less, tightening the field and putting pressure on inefficient miners.
The event is held every four years, but this time the dynamics are different, Bernstein wrote.
Bitcoin “short supply”
The industry’s Bitcoin ETF era is well underway, with analysts expecting pent-up demand to flow into the market.
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This demand is in direct conflict with miners issuing fewer Bitcoins on the market and selling them to finance their operations, creating a “shortage of supply.”
“The combination of increased BTC demand and decreased BTC sales by miners has created a unique supply shortage in the market. With the exception of this one, demand from ETFs has already been strong prior to the halving,” Bernstein said. is writing.
Investors could also be exposed to this move by scooping up Riot and CleanSpark stock as the price of Original Blend Bitcoin soars.
Bernstein analysts expect Riot to nearly double and CleanSpark to rise about 53%.
“Riot in particular was weak compared to other companies, but with an expected increase in production capacity in Corsicana from the second quarter, we expect better price action.”
The Corsicana facility is spread over 265 acres and is touted as the world’s largest Bitcoin mining facility.
Officials approved a total of 1 gigawatt of electricity, or enough energy to power 100 million LED light bulbs.
Virtual currency market movements
- Bitcoin is enjoying a dizzying rise today, rising another 4%, bringing its total weekly performance to a whopping 10%.
- The top 10 includes Avalanche, Cardano, and Ethereum.
- The broader market rose another 3.3%, reaching $1.8 trillion in total crypto market value on Friday morning.
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Liam Kelly is DL News” Berlin correspondent. To contact him, firstname.lastname@example.org.