The analysts at research and brokerage firm Bernstein have adjusted their year-end price projection for Bitcoin, raising it from $80,000 to $90,000. They attribute this upward revision to enhanced market dynamics and favorable conditions. In a communication to clients released on Thursday, analysts Gautam Chhugani and Mahika Sapra emphasized the prevailing bullish sentiment in the market, substantial inflows into ETFs, minimal miner leverage, and resilient network transaction fees as key factors influencing the revised Bitcoin price target.
Despite the upcoming halving event, which is estimated to occur on April 20, the analysts anticipate a relatively mild impact on miners compared to previous halving cycles. The event will see the reward for miners on the network drop from 6.25 BTC to 3.125 BTC per block, potentially affecting mining operations.
However, Chhugani and Sapra revised their estimate for post-halving hashrate decline to around 7%, down from the previous estimate of 15%, citing improved market conditions and stronger balance sheets among miners. They expect more efficient and lower-cost miners, such as CleanSpark and Riot Platforms, to benefit the most from the halving.
The analysts foresee CleanSpark and Riot emerging as category leaders in the space, given their self-mining capacity and efficiency. They also noted the potential of Marathon Digital, which has transitioned to a self-mining model and boasts a high liquidity position.
Investing in Bitcoin miners remains an attractive option for investors seeking exposure to the cryptocurrency, according to Bernstein. The top three U.S. listed miners control around 10% of the total network hashrate, with a combined market cap of approximately $13 billion.
Bernstein rates CleanSpark and Riot stock as outperform, with price targets of $30 and $22, respectively. They give Marathon a market-perform rating with a target of $23.
Regarding recent market fluctuations, the analysts view bitcoin’s recent dip from all-time highs as a temporary buying opportunity ahead of the halving event. They expect the market to consolidate before continuing its overall bullish trend.
Bitcoin is currently trading at $66,845, reflecting a 5% increase over the past 24 hours and a 58% gain year-to-date.