As bitcoin continues its meteoric rise, experts from global investment firm Alliance Bernstein are doubling down on their prediction that the digital asset will hit $150,000 per coin. This bullish outlook comes on the heels of significant inflows into Exchange-Traded Funds (ETFs), indicating a sustained upward trajectory for bitcoin’s value.
Record Highs and Bullish Market Outlook
Recent record highs have bolstered bitcoin’s bullish market outlook, with the scarce money surpassing the $72,000 mark. Analysts believe the surge in bitcoin’s price is closely tied to substantial inflows into approved ETFs.
Alliance Bernstein predicts a surge to $150,000 for bitcoin, citing the ongoing influx of funds into these newly introduced ETFs. Analysts Gautam Chhugani and Mahika Sapra highlight the significance of ETF inflows in driving bitcoin’s value higher.
Chhugani and Sapra state:
“These are still early days of Bitcoin’s integration into traditional asset portfolios […] We are now more convinced about our $150K price for bitcoin. Bitcoin today is at $71K, we expected this to break out post halving. We built Bitcoin institutional flows in our estimates to arrive at Bitcoin price. We estimated $10Bn inflows for 2024 and another $60Bn for 2025. In the last 40 trading days since ETF launch on Jan 10, Bitcoin ETF inflows have crossed $9.5Bn already.”
Untapped Investment Sources and Potential for Growth
Despite bitcoin’s recent gains, experts believe there is still significant untapped potential for investment. Alliance Bernstein underscores the opportunity within IRAs, private banks, and traditional capital pools, suggesting that these untapped sources could further fuel bitcoin’s value rise.
Gautam Chhugani and Mahika Sapra explain:
“We believe bitcoin miners are still largely retail-traded stocks and institutions have largely stayed away from bitcoin proxies, as traditional investors remain skeptical and still approach crypto with a rear-view bias […] With bitcoin climbing new highs of $71K, we expect institutional interest in bitcoin equities to finally tip over, and bitcoin miners to be the largest beneficiaries,”
They mentioned investors can also achieve favorable returns by investing in stocks related to Bitcoin mining.
Related reading: Bitcoin Mining Stocks Boom With Marathon Digital In The Lead
Success of Bitcoin ETFs
The approval of 11 spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) in January has proven highly successful, with significant daily investments pouring into these funds. These ETFs provide investors with seamless access to the digital asset market, further driving bitcoin’s value higher.
Mining Stocks as Promising Avenue for Investors
In addition to ETFs, Alliance Bernstein suggests that Bitcoin mining stocks present a promising avenue for investors seeking lucrative returns. By investing in mining stocks such as Riot Platforms (RIOT) and CleanSpark (CLSK), investors can capitalize on the growing hash rate capacity and low production costs within the Bitcoin mining industry.
They highlighted:
“Investors merely look at daily correlation of Bitcoin miners, only during days when they see Bitcoin rallying […] This selective periodic view is incomplete. Through cycle Bitcoin miners almost always outperform Bitcoin during bull-markets and almost always underperform Bitcoin during bear markets.”
They suggests that investors should adopt a long-term perspective when considering investment opportunities. Specifically, the analysts believe that we are currently in the middle of a cycle spanning 2024-25, and they view any periods of weakness in the mining sector as chances to purchase assets at favorable prices.
Alliance Bernstein Bullish on Bitcoin
Experts from Alliance Bernstein are increasingly convinced that bitcoin’s price will surge to $150,000 per coin. The ongoing influx of funds into ETFs, coupled with the untapped potential of Bitcoin investments within traditional asset portfolios, points to a continued upward trajectory for the digital asset. With record highs and bullish market momentum, bitcoin’s journey to $150,000 appears to be on track, presenting lucrative opportunities for investors looking to capitalize on the digital asset market.
