Bet on bitcoin miners. After the occurrence of last halving of Bitcoin (BTC) on May 11, 2020it is now the 4the opus of this process which is on the horizon. In fact, the next halving of the BTC network is expected to occur during this monthApril 2024. With this drop in issuance of new bitcoins coming in just over 2 months, Bernstein financial analysts recommend investing in crypto-mining companies.
The well-oiled mechanics of halving of Bitcoin gets closer again
Finance and investment specialistsBernstein Alliance (AB) show up regularly very optimistic for the Bitcoin sector and cryptos. Among their main reasons for being so enthusiastic is the process of halving provided for in the Bitcoin code by Satoshi Nakamoto.
The latter occurs every 210,000 blocks of mined transactions, approximately every 4 years. At each occurrence of halvingthere block reward – which encourages miners to put their computing power at the service of the BTC network – East divided by two. So, at the time Bitcoin was created, in 2009, this reward was 50 BTCbut currently, it is only 6.25 BTC after 3 halvings. And after the 4e halving next April, this reward will therefore be 3,125 BTC per validated block.
It is therefore in this context that Bernstein analysts recommend in a recent report, commented on by CoinDesk, to consider investing in bitcoin mining companies before this new block reward reduction occurs.
Bernstein welcomes investment in BTC miners like Riot
Bernstein’s financial experts thus offer (barely) indirect exposure to Bitcoin via actions stock exchanges of large listed crypto-mining companies. The report cites in particular the actions RIOT of Riot Platforms and the actions CLSK of CleanSpark.
Because in addition to halving to come, analysts note that the recent approval of spot Bitcoin ETFs is already stimulating investor interest in Bitcoin – and particularly the interest of extremely wealthy institutions. A favorable alignment of the planets for Bernstein:
« The story with institutional investors conducted on ETFs spot of Bitcoin is pushing demand. (…) We expect a higher price to drive larger inflows into ETFs, leading to new highs in 2024.”
Extract from the latest Alliance Bernstein report
Bernstein analysts agree on this last point the opinion of executives of the institutional branch of the Coinbase crypto-exchange. Indeed, the latter see spot Bitcoin ETFs as a paradigm shiftwhich marks the start of a major movement for adoption of Bitcoin and cryptocurrencies. The next halving of April 2024 should therefore be announced as a catalyst additional in this much hoped for new bull market (bull market).