© Reuters
On Friday, the value of the surged above $48,000, registering a 13% rise over the past seven days and approaching the critical resistance level of $50,000.
Even with a substantial rise in 2023, marked by a 160% increase, and sustained stability in 2024, current demand for bitcoin has not reached the high levels seen in 2017 and 2021.
Nonetheless, Bernstein analysts predict that bitcoin’s most prosperous times are yet to come, as the exchange-traded fund (ETF)-influenced market sparks fears of missing investment opportunities. They claim that bitcoin is in a strong position to reach unprecedented values.
Analysts have noticed that Bitcoin ETFs are becoming significant drivers of the bitcoin price.
They report a notable reduction in outflows from the Grayscale Bitcoin Trust, which are now only around $50 million, while the newly introduced ETFs have attracted almost $1 billion over the past two trading sessions.
This change significantly increased optimism in the market, and although the market reacted quickly to the news of the ETF approval, it did not fully reflect the capital flowing into the funds and the upcoming limited availability of the bitcoin.
We believe the influx of capital is primarily coming from bitcoin ‘backers,’ who have found an easy method to include bitcoin in their brokerage accounts through ETFs,” the analysts said.
On the other hand, skeptics remain cautious. It appears that the initial curiosity about bitcoin comes from potential new investors wanting to understand it better, even if they haven’t started investing yet.
Bernstein initially predicted a surge in the value of bitcoin following its halving event. However, given the unprecedented success of the ETF launch – the largest in three decades – and the steady inflow of capital into ETFs, they are now forecasting a significant rise in the value of bitcoin before the halving.
Therefore, those who are considering investing in Bitcoin mining companies and intend to evaluate the risks after the halving should select their preferred companies now and hold their investments until the halving event scheduled in April 2024, as analysts recommend.
Bernstein’s favorite picks in this sector are Riot Platforms (NASDAQ:) and CleanSpark (NASDAQ:).
This article was produced and translated with the help of artificial intelligence and reviewed by an editor. For more details, see our Terms and Conditions.