Many investors and analysts from various companies are optimistic about Bitcoin, assuming that it is heading towards a new high. According to Business Insider, Bernstein experts predict that the first cryptocurrency will resume its bullish trajectory and reach the $150,000 mark by 2025.
Analysts from the agency view Bitcoin's recent drop to $57,000 as a short-term phenomenon and count on an imminent correction. The $150,000 mark "represents 137% upside from current levels," they reckon, attributing such a bright forecast to three reasons.
Experts at Bernstein cite continued inflows into spot BTC ETFs, which have already made up half of the volume expected for the entire year of 2024. Despite concerns caused by 8 days of outflows last week, the Bitcoin ETF launch has been the most successful initiative in recent times, the analysts say.
In addition, corporate interest in the leading digital currency remains strong, supported by the Financial Accounting Standards Board's cryptocurrency rule updates. Bernstein also highlights solid demand for direct spot BTC purchases, which has contributed to a recovery from recent ETF outflows.
Furthermore, April's halving has not dampened cryptocurrency mining activity. After this event, the amount of tokens awarded to successful miners typically decreases, with Bitcoin's supply falling. However, the flagship cryptocurrency has remained unaffected. Against this background, the amount of computational resources required for mining has barely increased. On top of that, mining equipment prices remain steady, even though Bitcoin has added value.