Bernstein Analysts Predict Bitcoin Price to Hit $70,000 This Year, Saying There Are “No Headwinds”

Last update:

February 6, 2024 6:57 am EST | 2 minutes read

Source: From-3

Analysts at the investment firm Bernstein expect Bitcoin (BTC) to continue its upward trend, surpassing its previous all-time high of $69,000 and potentially reaching $70,000 this year.

Analysts expressed confidence in the cryptocurrency's risk-reward profile, saying no significant challenges are expected that could hamper its rise.

In a note to investors, analysts Gautam Chhugani and Mahika Sapra highlighted the recent launch of 10 Bitcoin spot exchange-traded funds (ETFs) in the United States, which briefly pushed Bitcoin to $49,000.

The current trading price is around $42,600. The analysts noted that the $42,000-$43,000 range represents a “no regrets price with asymmetric upside potential.”

They predicted a further 65% increase in Bitcoin's value and predicted a price of around $70,000 before the end of the year.

Bernstein predicts that Bitcoin will rise to $70,000 by 2024. Positive macroeconomic conditions, ETF net inflows and on-chain growth are the main drivers. BTC’s current range suggests a 65% increase. #Bitcoin #ETF #Amber

— Sharpe Signals (@SharpeSignals) February 5, 2024

Four reasons why Bitcoin would hit $70,000 this year: Bernstein

Analysts cited four key reasons that supported their optimistic outlook.

First, they noted the significant net inflows into ETFs, estimating that around 19,000 Bitcoin were added last week alone.

According to Bernstein, the growing demand for ETFs will contribute to Bitcoin's overall price performance due to its finite supply curve.

“The ETF juggernaut will continue to be key to price action,” the analysts said.

“For a commodity with a known finite supply curve, any additional purchasing demand of this magnitude will be material to the price.”

The second reason for optimism is the enthusiastic response from advisor networks regarding the possible allocation of Bitcoin in client portfolios.

ETF issuers have reportedly received unprecedented and accelerated feedback, suggesting that ETFs have tapped into a sustainable source of long-term Bitcoin demand.

CoinShares, all in one Current reportstated that institutional crypto investment products recorded a net inflow of $708 million last week, with Bitcoin accounting for 99% of these inflows.

Favorable macroeconomic conditions are driving Bitcoin price higher

Bernstein also highlighted favorable macroeconomic conditions as a factor.

The Federal Reserve's hints of possible interest rate cuts, currently between 5% and 5.25%, are making savings less attractive and encouraging investors to look for higher returns elsewhere.

Risk assets, including Bitcoin, tend to perform well in lower interest rate environments.

Additionally, Bernstein hinted that the outcome of the US presidential election could have an impact on the crypto market.

A Republican victory would mean a change in leadership at the Securities and Exchange Commission (SEC) and potentially lead to a different approach to regulation.

Current SEC Chairman Gary Gensler has been criticized by the crypto industry and lawmakers for his strict enforcement stance on crypto regulation.

Bernstein analysts are not alone in their optimistic assessment of Bitcoin.

As reported, Anthony Scaramucci, the founder and managing partner of hedge fund SkyBridge, has suggested that the price of Bitcoin could rise potentially reaching $170,000 in the coming year.

Scaramucci's forecast is based on two key factors, including growing demand for newly listed exchange-traded funds (ETFs) and the upcoming halving scheduled for April.

He explained that if Bitcoin were to maintain its current price of around $45,000 at the time of the halving, it could see a notable rise to $170,000 by mid-to-late 2025.

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers