🎈 Up Big Today: Find today's biggest gainers (some over 50%!) with our free screenerTry Stock Screener

These Analysts Keep $150K Bitcoin Price Target Despite Slowing ETF Inflows

Published 30/04/2024, 08:19
© Reuters.  These Analysts Keep $150K Bitcoin Price Target Despite Slowing ETF Inflows
BTC/USD
-

Benzinga - by Ivan Crnogatić, Benzinga Editor.

Research and brokerage firm Bernstein remains optimistic about the future of the cryptocurrency market despite the recent slowdown in spot bitcoin exchange-traded fund (ETFs) flows.

What Happened: In a recent research note, Bernstein analysts Gautam Chhugani and Mahika Sapra suggested that the Bitcoin lull is temporary. They expect an upward trajectory, with Bitcoin potentially reaching a $150,000 price target by the end of 2025, The Block reported.

The integration of Bitcoin ETFs into mainstream financial platforms, such as private banks, wealth advisors and brokerages, will require time, they say. These institutions develop the necessary compliance frameworks.

Chhugani and Sapra also point to the impressive $12 billion in net inflows since the launch of spot bitcoin ETFs and the robust performance of leading Bitcoin miners post-halving as indicators of the market’s underlying strength.

Also Read: ‘Bitcoin Is In Correction Mode,' But That's ‘Necessary For The Chart To Look Good,' Crypto Trader Reassures

Ethereum ETFs: The analysts predict that if the U.S. Securities and Exchange Commission (SEC) denies spot Ethereum ETFs, it would likely be overturned in court.

They drew parallels to the Grayscale Bitcoin ETF case and cited the inconsistent correlation between spot and futures markets.

If the SEC were to deny on the basis of ether being classified as a security, it would create a conflicting situation with the Commodity Futures Trading Commission (CFTC), which views ether as a commodity.

In either scenario, the analysts suggest that an SEC denial could shift the market focus back to ether, which they believe offers an appealing risk-reward profile given its recent underperformance relative to bitcoin. This renewed attention could also benefit “ETH-beta” Layer-2 tokens, such as Arbitrum (CRYPTO: ARB), Optimism (CRYPTO: OP), and Polygon (CRYPTO: MATIC).

The Bernstein analysts also highlighted the growth potential of various other crypto niches and projects. They noted Solana‘s (CRYPTO: SOL) strong position in crypto payments, the expanding influence of DeFi platforms like Uniswap (CRYPTO: UNI), GMX (CRYPTO: GMX), and Synthetix (CRYPTO: SNX), and the real-world asset market.

In conclusion, Chhugani and Sapra reaffirmed their projection that the total crypto market cap will surge to $7.5 trillion within the next 18 to 24 months, even amid the current market consolidation. The analysts remain optimistic about the long-term prospects of the asset class and its capacity to transform traditional financial structures.

What’s Next: These topics are expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Bitcoin And Ethereum Take Center Stage According To Coinbase Q2 Crypto Market Guide

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.