Alliance Bernstein’s analysts have restated their positive outlook on bitcoin, projecting a surge to $150,000 by 2025. They view the recent price correction as a necessary cleansing of market excesses. Moreover, they have emphasized the market’s resilience, citing significant inflows into spot bitcoin exchange-traded funds (ETFs) and encouraging signs of increased corporate investments in bitcoin.
Gautam Chhugani and Mahika Sapra, analysts at Alliance Bernstein, maintain their confidence in bitcoin’s potential to reach $150,000 by 2025, despite recent price fluctuations. They stated, “We feel even more confident in our prediction, and BTC metrics indicate a healthy cycle that is still in its early stages.”
The analysts consider the recent dip in bitcoin’s price to around $57,000 as a beneficial adjustment that has “cleared out the excessive leverage on futures contracts on crypto exchanges,” thereby enhancing market stability. They believe that BTC is far from reaching its full potential and note that the risk-reward ratio for investing in bitcoin remains attractive.
This correction in bitcoin’s price coincided with a shift in U.S. spot bitcoin ETFs, which have experienced a reversal from outflows to net inflows. The analysts pointed out that even Grayscale’s converted bitcoin ETF (GBTC) recorded its first net inflow on Friday, amounting to $63 million, after a streak of 78 consecutive days of outflows. They emphasized, “This is significant considering GBTC has been a significant source of ongoing selling that the new nine ETFs have had to absorb.”
The analysts also highlighted strong overall inflows into spot bitcoin ETFs over the past three months and new incentives for corporate treasuries to invest in bitcoin. They mentioned a consistent post-halving hash rate, solid transaction fees, and declining prices for bitcoin mining equipment as indicators of a healthy bitcoin market.
In November of last year, Bernstein predicted that the price of bitcoin could reach $150,000 by 2025. Chhugani stated at the time that this prediction was driven by optimism regarding the U.S. Securities and Exchange Commission (SEC) approving spot bitcoin ETFs. Last month, the firm’s analysts expressed their belief that “bitcoin’s bullish trajectory will resume post-halving, once the mining hash rates have adjusted and ETF inflows resume.”
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