Bitcoin Continues to Surge Towards New Highs
Bitcoin’s Recent Surge
Bitcoin recently surpassed the $48,000 mark, representing a 13% increase over the past week and approaching the crucial $50,000 resistance level.
Bitcoin’s Market Performance
Despite experiencing a substantial upturn in 2023 with a 160% increase, as well as demonstrating resilience in 2024, Bitcoin’s current level of interest still falls short of the peaks observed in 2017 and 2021.
Bitcoin’s Potential for Record Highs
Analysts at Bernstein believe that Bitcoin’s best days are yet to come, attributing this potential to the fear of missing out (FOMO) driven by the ETF market. They anticipate that BTC is well-positioned to reach new record highs.
Bitcoin ETFs as Price Catalysts
The analysts have observed that Bitcoin ETFs are emerging as clear price catalysts for Bitcoin, with significant decreases in outflows from Grayscale Bitcoin Trust and substantial inflows into new ETFs in the last two trading days.
Market Sentiment and Future Outlook
This shift has notably enhanced market sentiment, and while the market swiftly reacted to news of ETF approvals, it has yet to fully account for the inflows into funds and the impending scarcity of supply.
Impact of ETFs on Bitcoin Investments
The analysts noted that the money is still coming from the ‘believers’ who find it easier to access Bitcoin through ETFs in their broker accounts. Meanwhile, the initial interest in Bitcoin appears to be coming from new investors keen to learn more about it.
Forecast and Investment Recommendations
Bernstein’s initial forecast projected a rally in Bitcoin’s value after its halving event. However, considering the extraordinary success of the ETF launch, they now expect a significant Bitcoin rally to occur before the halving. They advise potential investors to select preferred companies and maintain their investments through the halving event in April 2024.
Top Picks in Bitcoin Mining
Bernstein’s top picks in this category are Riot Platforms (NASDAQ:) and CleanSpark (NASDAQ:).
