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Bitcoin ETF Slowdown Is a Short-Term Pause Not the Beginning of a Negative Trend: Bernstein

Apr 28, 2024
  • Bitcoin ETF slowdown is a short-term pause not the beginning of a negative trend, the report said.
  • Broker’s expectation of a bitcoin high of $150,000 by 2025 remains the same.
  • The bitcoin mining cycle remains healthy after the halving, Bernstein said.
The Bitcoin ETF slowdown is just a temporary pause, not a sign of a negative trend, according to a research report from Bernstein. The broker expects the price of Bitcoin to reach $150,000 by 2025, despite recent market fluctuations following the halving. The Bitcoin mining cycle remains robust, with major players consolidating their market positions. Network fees have stabilized at around 10% of miner revenues after spiking post-halving. The halving earlier this month slowed the growth in Bitcoin supply, but the overall outlook for the industry remains positive.As a researcher, I’ve come across some recent data indicating a decrease in inflows to Bitcoin (BTC) exchange-traded funds (ETFs). However, this is not a cause for concern, according to a report published by Bernstein on Monday. Instead, it’s likely just a brief pause before these ETFs become more accessible through private banking platforms, wealth advisors, and additional brokerage channels in the future.

The broker observes that Bitcoin, the most significant cryptocurrency, has shown little direction in pricing lately, as the market awaits a definitive trend after the halving event.

Analysts Gautam Chhugani and Mahika Sapra note that it takes time for bitcoin to be considered a suitable investment in a portfolio, and for the necessary regulatory framework to be established, enabling the sale of bitcoin ETF products.

According to Bernstein, their prediction that bitcoin will reach $150,000 by 2025 hasn’t changed. The substantial inflow of demand into Bitcoin ETFs has only strengthened their belief in this forecast.

After the bitcoin halving, the mining industry remains robust as top miners solidify their positions in the market. (Source: Report)

As a crypto investor, I’ve noticed that bitcoin network fees have stabilized around 10%, which equates to a significant portion of miners’ earnings. This figure has risen noticeably since the halving event took place.

The bi-yearly reduction of rewards for mining new bitcoins occurred earlier in this month, resulting in a deceleration of the increase in the total bitcoin circulation.

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2024-04-29 12:04