The globally active asset management firm Alliance Bernstein recently reaffirmed its optimistic forecast for Bitcoin, predicting that the cryptocurrency will rise to $150,000 by the year 2025. They view the recent price correction as a healthy adjustment of market excesses.
Bernstein's two analysts, Gautam Chhugani and Mahika Sapra, emphasize a 'healthy cycle' for Bitcoin. Despite recent price fluctuations, they remain confident in Bitcoin's potential, viewing the current cycle as still in its early stages.
The experts consider the decline in Bitcoin's price to around $57,000 as a sensible adjustment that has helped to clean up excessive leverage on futures contracts on crypto exchanges. This has helped to make the market more stable. The risk-reward ratio of Bitcoin continues to be appealing.
Market Shifts
The recent correction in Bitcoin coincided with a shift in US spot Bitcoin exchange-traded funds (ETFs), which recently transitioned from outflows to net inflows. Even Grayscale's converted Bitcoin ETF (GBTC) recorded its first net inflow of $63 million after a series of outflows, indicating a significant shift in the market.
The analysts also point to strong overall inflows into spot Bitcoin ETFs over the last three months, as well as new incentives for corporate treasuries to invest in Bitcoin. They view a steady hash rate post-halving, robust transaction fees, and declining prices for Bitcoin mining equipment as positive signs for the Bitcoin market.
Outlook for the Future
As early as November of last year, Bernstein predicted that Bitcoin could reach the $150,000 mark by 2025. This forecast was driven by optimism regarding the approval of spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC).
The company's analysts expect that Bitcoin's bullish trajectory will resume after the halving, once mining hash rates have adjusted and ETF inflows return.
