- Bernstein raises year-end price target for Bitcoin to $90,000, adjusting from previous forecast of $80,000, anticipating a strong bull cycle.
- Bernstein adjusts price targets for leading mining stocks, projecting CleanSpark and Riot as dominant players in the Bitcoin mining sector.
Bernstein’s upgrade of the year-end price target for Bitcoin to $90,000 by Bernstein indicates an optimistic view on the future performance of this cryptocurrency. This upward adjustment from a previous target of $80,000 suggests that the broker anticipates a strong bull cycle for Bitcoin, supported in part by a lower than expected hash rate reduction following the halving event.
Originally, a 15%decline in thehash rate, which measures the total computational power employed in mining and processing transactions on blockchains using a proof-of-work system , wasexpected , but is now estimated to be only 7%, as we have analyzed at ETHNews.
These trends are underpinned by several key factors: the start of a new Bitcoin bull cycle, significant capital inflows into Bitcoin-related exchange-traded funds (ETFs), aggressive expansion of miner capacity, and record levels of dollar revenues for miners .
Bernstein analysts Gautam Chhugani and Mahika Sapra view Bitcoin miners as attractive investments for equity investors seeking exposure to the crypto cycle.
In addition, Bernstein updated its estimates for Bitcoin mining stocks in its coverage, reflecting the impact of quadrennial halving, an event in which mining rewards are halved, expected in mid-April. This adjustment to rewards seeks to reduce Bitcoin inflation and directly affects mining profitability.
With these adjustments, Riot and CleanSpark emerge as leaders in the sector, highlighted as the largest miners with the largest mining capacity of their own. This analysis reinforces the perspective that Bitcoin remains a key asset within the crypto sector, with growth potential as halving approaches and mining infrastructure expands.
