- Bernstein analysts wrote today that there are “no headwinds” preventing Bitcoin from reaching $69,000.
- They said ETF flows, macroeconomic conditions, and growth in Bitcoin’s on-chain ecosystem are likely to push Bitcoin higher.
No significant challenges are expected to prevent Bitcoin price from rising above its all-time high of $69,000 this year, and even beyond that to $70,000.
This was announced by analysts at the investment firm Bernstein.
“We’re not calling for volatility to skyrocket to all-time highs, but the risk-reward for the remainder of 2024 remains strong at today’s prices,” analysts Gautam Chughani and Mahika Sapura wrote in a note to investors. I’m happy with what I’ve gotten.”
After the creation of 10 Bitcoin Spot ETFs in the US on January 11, Bitcoin briefly shaved off $49,000 and is now trading at around $42,600.
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The report adds that the $42,000 to $43,000 range is a “no-regret price with asymmetric upside,” and Bitcoin will rise another 65% to around $70,000 by the end of the year. I predicted it would be.
Analysts Chugani and Sapra cited four reasons for their bullishness.
The first is the ETF’s net inflows, which totaled about 19,000 Bitcoin in the last week alone, Bernstein said.
Analysts said, “Big stocks in ETFs will continue to be a factor in price movements.” “For a commodity with a known finite supply curve, an increase in purchase demand of this magnitude will feed into prices.”
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A second reason to be optimistic about Bitcoin, Bernstein said, is that ETF issuers have received “unprecedented and rapid” responses from advisor networks on how to allocate Bitcoin to their clients’ portfolios. This suggests that the ETF may have actually unlocked a long-term source of capital for Bitcoin demand.
According to a CoinShares report released today, $708 million in net flows into institutional crypto investment products last week alone, bringing the total net inflows since January 1 to $1.6 billion.
Bitcoin accounted for 99% of these flows.
Bernstein said macroeconomic conditions also look good.
The Fed has indicated it could cut interest rates by 5% to 5.25%.
When interest rates fall, savings become less desirable and investors seek returns elsewhere. Risk assets, including Bitcoin, tend to perform better when interest rates are lower.
Election Impact on the SEC
Aside from monetary policy, Bernstein said the cryptocurrency market could rise with a Republican victory in the US presidential election, which would mean a change in leadership at the Securities and Exchange Commission. .
SEC Chairman Gary Gensler has been criticized by the crypto industry and lawmakers alike for his enforcement-heavy approach to crypto regulation.
According to Bernstein, the fourth tailwind for Bitcoin is the growth of the on-chain ecosystem.
“As the Bitcoin developer ecosystem grows, we expect Layer 2 to continue to drive trading revenue for miners and sustain economic activity from token mints and Ordinal,” the report states. ing.
The Ordinals protocol is a way to give a piece of Bitcoin a unique identifier, thereby turning it into something similar to an NFT.
Ed Go, head of trading at crypto trading firm B2C2, echoed Bernstein’s sentiments.
“Bitcoin is showing significant buyer preference,” he said. DL News on mail.
“Crypto investment patterns remain strong, with an even split of investments from crypto-native funds, retail brokers and proprietary trading companies, thus continuing the trends seen so far this year.” he added.
Tom Carreras is a markets correspondent for DL News.Do you have any tips about Bitcoin and the market? Contact us at firstname.lastname@example.org