Bitcoin's recent rally to a new all-time high has bolstered Bernstein analysts' confidence in their prediction of the cryptocurrency reaching $150,000 by mid-2025. In a report released on Monday, the brokerage firm highlighted the remarkable surge in spot bitcoin ETF inflows, further solidifying their bullish outlook.
Reaffirming their stance, the analysts emphasized the potential for bitcoin to "break out" after the next halving event, signaling optimism in select mining stocks despite recent declines in their share prices.
The brokerage reiterated its recommendation for investors to consider bitcoin mining stocks as a strategic play to capitalize on the anticipated rally. However, despite their bullish sentiment, mining stocks experienced a downturn in early trading on Monday. Notable declines were seen in CleanSpark (CLSK), down 9%, Marathon Digital (MARA), down 6.7%, and Riot Platforms (RIOT), down 2.5%.
Bernstein analysts Gautam Chhugani and Mahika Sapra noted the prevailing skepticism among traditional investors toward crypto-related equities, but they anticipate a shift in institutional sentiment as bitcoin continues to reach new highs. They suggested that institutional interest in bitcoin equities is poised to increase substantially, positioning bitcoin miners as the primary beneficiaries.
The report emphasized the resilience of mining stocks amid potential challenges, stating that rising bitcoin prices and transaction fees would offer a buffer for miners, even in the face of doubled production costs post-halving. Riot Platforms (RIOT) and CleanSpark (CLSK) are expected to maintain robust gross margins, with projections of around 70% and 60%, respectively.
Despite the recent underperformance of mining stocks relative to the broader bitcoin rally, the report highlighted the evolving dynamics of investor sentiment. While some investors remain cautious, Bernstein analysts anticipate a shift in strategy, with a growing preference for bitcoin equities over spot ETFs.
Bitcoin's price surged over 4% on Monday, reaching approximately $72,269 at the time of publication, reflecting broader market optimism. Similarly, the CoinDesk 20 index (CD20) recorded a 4% gain, underscoring the positive sentiment surrounding the cryptocurrency market.