Bernstein analysts have reiterated that Bitcoin could still rally to $150,000 this year. These experts noted that BTC was experiencing what they described as the “worst bear case” in its history, suggesting that this bear market may not be as deep as previous cycles.
Bernstein Predicts Bitcoin Rally To $150,000 By Year-End
Bernstein analysts, led by Guatam Chhugani, have maintained that Bitcoin could still reach $150,000 by year-end despite its recent crash to as low as $60,000. The analysts stated that this is the weakest BTC bear case in its history. They added that what the market is currently experiencing is a “self-imposed crisis of confidence” rather than a failure in the system.
Furthermore, the analysts explained that there hasn’t been any blow-up or other major catalyst that typically triggers Bitcoin bear markets. On the other hand, they believe the fundamentals are stronger than ever, citing the regulatory-friendly climate under President Donald Trump and growing institutional adoption through BTC ETFs and firms like Strategy.
Bernstein analysts also addressed quantum threats to Bitcoin, noting that these threats affect not only the leading crypto but also the banking industry and other mission-critical systems. These analysts believe that this will be addressed when the time comes, with all these systems adopting quantum-resistant standards.
Michael Saylor’s Strategy already plans to launch a Bitcoin security program to prepare for the threats posed by quantum computing. However, Saylor opined that the threat of quantum computing is still about ten years away, thereby urging investors not to panic. Meanwhile, Bernstein addressed concerns that large corporate holders, such as Strategy, could liquidate their holdings amid this market downturn.
The firm stated that large corporate Bitcoin holders, such as Strategy, have structured their balance sheets to handle such market conditions. They alluded to Strategy CEO Phong Le’s statement that they won’t have to liquidate unless BTC drops to $8,000 and remains there for up to five years.
BTC To Pick Up As Liquidity Conditions Ease Up
Bernstein analysts have indicated that Bitcoin will rally again as liquidity conditions ease, noting that ETFs and corporations are well-positioned to accumulate more BTC as conditions improve. They also explained that the leading crypto continues to trade as a liquidity-sensitive risk asset rather than ‘digital gold,’ which is why it is underperforming gold, as liquidity remains concentrated in specific assets.
It is worth noting that Bernstein analysts aren’t the only ones who have predicted that Bitcoin could still rally to a new all-time high (ATH) this year. TD Cowen analyst Lance Vitanza also stated last week that they expect BTC to reach a new ATH this year, with their base case being the third quarter of this year.
At the time of writing, the Bitcoin price is trading at around $69,700, down almost 2% in the last 24 hours, according to data from CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com
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