Simply put
- Analysts at Bernstein believe Bitcoin prices may reach their peak within the next six months to a year.
- As the market expands, Ethereum and Solana are expected to rise in prominence.
- Bernstein has adjusted its price target for Robinhood shares to $160.
In a note on Tuesday, an analyst from Bernstein mentioned that with the White House advocating for cryptocurrency on Capitol Hill, it appears increasingly unlikely to reach a market peak this year.
They referred to President Donald Trump’s goal of establishing America as the “crypto capital of the world” as quite a daunting mission. Overall, they anticipate Bitcoin and other digital assets maintaining activity until 2026, with peak prices expected the following year.
According to the analysts, Bitcoin could range between $150,000 and $200,000, with these changes likely occurring within six months to a year.
As of Tuesday, cryptocurrency was priced at approximately $113,000, marking a 5.5% decline over the past week, based on data from Coingecko. Bitcoin had recently hit a record high of over $124,000 before seeing a drop.
Bernstein analysts noted that this trend appears to deviate from the historical four-year price cycle seen in Bitcoin, which peaked at around $68,000 in 2021 and $20,000 in 2017.
Trump’s support for cryptocurrency may disrupt this typical cycle, although some experts have made similar assessments. They attribute this shift to structural changes in the Bitcoin market, particularly related to the introduction of spot exchange trade funds in the U.S. last year.
Moreover, Bernstein is now predicting a rise in alternative cryptocurrencies, particularly as the market approaches the end of this year.
Both Ethereum and Solana could potentially lead the next phase in the digital asset market, which, as analysts suggest, could be influenced by interest rate cuts that encourage risk-taking, alongside a renewed interest in decentralized finance and staking. They did not provide specific price targets for these cryptocurrencies in their recent update.
Decentralized finance (DeFi) emerged significantly in 2020, transforming into a multi-billion dollar sector practically overnight as crypto users leaned into concepts like yield farming and governance tokens during the pandemic.
With a focus on on-chain returns, Bernstein emphasized that digital asset financing companies centered around Ethereum and Solana will continue to grow. Unlike those who may invest solely in Bitcoin, these firms can engage in staking to earn returns.
Bernstein identified Robinhood as one company successfully stabilizing its business model through crypto. The retail brokerage is expected to initiate staking for customers on digital assets in June, lessening its dependence on volatile trading revenues. Accordingly, Bernstein increased Robinhood’s price target from $105 to $160.
On Tuesday, Robinhood shares dropped nearly 6% to around $108 at the time of this report. Yet, the stock has almost tripled from $38.54 a year ago, largely due to its reliance on cryptocurrency.
