In a recent briefing by Bernstein, a research and brokerage firm, the analysts Gautam Chhugani and Mahika Sapra advised that Bitcoin miners’ stocks present an optimal investment opportunity as the cryptocurrency is on course to reach $150,000. The analysts highlighted the importance of a cyclical perspective, as miners typically outperform Bitcoin in bull markets and the reverse in bear markets.
Investment Strategy and Halving Impact
The experts emphasized that dips in miners’ performance should be considered chances to buy, especially in the midst of the current 2024-25 cycle. As Bitcoin sets new records, surpassing $72,000, institutional interest in Bitcoin stocks is expected to surge. The analysts spotlighted Riot Platforms and CleanSpark, noting that they could see gross profit margins of 70% and 60%, respectively, at current and future Bitcoin prices.
The upcoming Bitcoin halving event, scheduled for April, will halve the miners’ block reward but will also potentially increase their market share if the miner capacity diminishes. Transaction fees for each block mined will continue to provide additional income to miners.
Analysts See Bright Future for Bitcoin
Chhugani and Sapra remain bullish on Bitcoin’s future, even after surpassing its previous all-time high of $69,000. They anticipate further breakouts post-halving, bolstering their $150,000 Bitcoin price target. With the introduction of spot Bitcoin ETFs in the US, institutional inflows are forecasted to rise significantly, potentially surpassing Bernstein’s 2025 predictions in under 166 trading days if the current trend persists. The analysts expect further integration of Bitcoin into conventional asset portfolios, marking the beginning of a new era for the cryptocurrency in traditional markets.