Wall Street investment bank Bernstein: More Confident Bitcoin Will Reach $150,000, Mining Stocks to See Massive Rebound

Wall Street investment bank Bernstein's analysis indicates that the likelihood of Bitcoin reaching the target price of $150,000 by 2025 is increasing, and mining stocks will also rebound after the frenzy of spot ETFs.

Bernstein: More Confident Bitcoin Will Rise to $150,000 Next Year

Bernstein analysts maintain their view that the Bitcoin price cycle will follow the pattern of rising after the 4-year block reward halving:

In the cycle from 2024 to 2027, it is expected that Bitcoin will reach a peak of $150,000 in mid-2025.

The $150,000 price target includes not only the halving factor but also the inflow of funds from Bitcoin spot ETFs. However, Bernstein seems more optimistic about the performance of mining company stocks in the future, believing that a rebound is on the horizon.

Mining Company Stocks Plummet

Major U.S. listed mining companies including Argo Blockchain, HIVE, Riot Platforms, Bit Digital, CleanSpark, Bitfarms, Marathon Digital Holdings, all saw significant declines after the opening on March 11.

Mining Companies to Experience a Massive Rebound

Bernstein analysts Gautam Chhugani and Mahika Sapra pointed out:

With Bitcoin reaching a new high of $70,000, we expect institutional interest in Bitcoin stocks and spot ETFs to gradually diminish. Bitcoin miners will become the biggest beneficiaries, and long-term trading of Bitcoin miners will require "more patience."

Bernstein mentioned that due to the emergence of Bitcoin ETFs, mining company stocks are no longer seen as an indirect way to invest in Bitcoin. As a result, spot ETFs have been performing well recently, while mining company stocks have not been favored by investors and have not kept pace with the rise in Bitcoin.

Are Mining Company Stocks Being Replaced? Research Institution: Investors are Going Long on Bitcoin ETFs and Shorting Mining Company Stocks

Furthermore, in the trading idea of "going long on Bitcoin ETFs and shorting mining company stocks," ETFs have an advantage over mining companies facing halving uncertainties.

In response to this, Bernstein analysts explained that they believe the main traders of mining company stocks are still retail investors, and institutional investors generally stay away from indirect investments in Bitcoin, maintaining bias towards Bitcoin.

Finally, Bernstein emphasized that although the Bitcoin halving means mining costs will double, the rise in Bitcoin price and transaction fees can provide a buffer for mining companies.