Analysts at investment companies Bernstein plan a promising future for Bitcoin Bitcoin/USDpredicting that its price will surpass the previous high of $69,000 and potentially reach $70,000 this year.
While it does not expect a smooth, volatility-free rise, the firm sees a favorable risk-reward ratio for Bitcoin in 2024.
What happened: Gautam Chhugani and Mahika Sapra, analysts at Bernstein, shared their insights in a note to investors: “While we are not calling for a direct, volatility-free climb to all-time highs, we are comfortable with the risk-reward tradeoff for the remainder of 2024 at today’s price.”
Following the launch of 10 spot Bitcoin Exchange Traded Funds (ETFs) in the United States on January 11, the price of Bitcoin briefly touched $49,000 and is currently trading around $42,600.
Bernstein’s report identifies the $42,000 to $43,000 range as a strategic entry point, offering a “no-regrets price with asymmetric upside.”
They predict a 65% increase in the value of Bitcoin, aiming to reach the $70,000 mark by the end of the year.
Also Read: Ethereum ETFs Have 60% Chance of Launching in 2024, ETF Expert Says: Approval Is the ‘Path of Least Resistance’
Because matter: Analysts attribute their bullish stance to four key factors:
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Inflows into ETFs: Bernstein highlights the significant impact of net ETF inflows on the price of Bitcoin. Last week alone, inflows of around 19,000 Bitcoins were recorded. “The ETF giant will continue to become material for price action,” analysts said, underscoring the influence of limited supply and rising demand on prices.
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Responses from the consultant network: The firm notes that ETF issuers are receiving rapid and unprecedented responses from advisor networks regarding Bitcoin allocations in client portfolios, indicating a source of sustained demand for Bitcoin.
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Macroeconomic conditions: Potential interest rate cuts by the Federal Reserve, currently between 5% and 5.25%, could make savings less attractive and push investors into risky assets like Bitcoin, which tend to thrive in high-interest environments. of lower interest.
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Electoral impact on the SEC: A possible Republican victory in the US presidential election could lead to a change in the leadership of the SEC, impacting the dynamics of the cryptocurrency market. Chairman of the SEC Gary Gensler has faced criticism for its strict approach to regulating cryptocurrencies.
What’s next: The research note also sees the growth of Bitcoin’s on-chain ecosystem, including developments like Ordinals and layer 2 solutions, as a positive indicator.
Read next: Bitcoin drops below $43,000; Monero, Flare among the top losers
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