2 crypto stocks to take advantage of an explosive year for bitcoin, according to Bernstein


Investing.com – Investors should go long cryptocurrencies now or regret it later, according to Bernstein. The latter issued an extremely optimistic outlook for the cryptocurrency market in 2024 this week, predicting that the will hit a new all-time high in the second half of the year and could close the year at around $80,000, or about 88% above current levels. He also predicts that bitcoin will reach $150,000 in 2025.

“We expect 2024 to be an inflection year for crypto,” Gautam Chhugani, senior crypto analyst at Bernstein, wrote in the note. “Not going long crypto – strategically through fund activity or directly through digital asset ownership, or indirectly through crypto stocks – would prove costly for investors.”

Bernstein recommended bitcoin mining stocks, which offer higher beta — or higher risk and higher potential reward — than bitcoin itself. Riot Platforms (NASDAQ:) and CleanSpark (NASDAQ:) are Bernstein’s preferred picks. According to Chhugani, both companies are “market share consolidators” whose self-mining capability gives them a significant operational advantage over their rivals. They also benefit from low energy and production costs, high liquidity and balance sheet flexibility.

“We are also in a favorable macroeconomic climate, with rates peaking, inflation falling and the possibility of monetary stimulus in a major global election year,” Chhugani added. “We are not brave enough to be careful and we love bitcoin and bitcoin mining stocks way too much.”

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