Simply put
- Analysts at Bernstein have kept their forecast for Bitcoin at $150,000, despite the cryptocurrency recovering almost 50% from its previous peak.
- They believe that clearer regulatory frameworks and ongoing buying activity from investment strategies may support this optimism.
- This week, Bitcoin has increased by over 6%, marking its highest price in two weeks.
Since reaching a record high in October last year, Bitcoin has experienced a nearly 50% decline, not meeting the lofty expectations set by its enthusiasts and analysts.
Recently, it peaked at $63,900 but settled at $63,836 on Monday. Bernstein analysts are still holding on to their ambitious target of $150,000 for year-end.
They remarked, “While cryptocurrency corrections can be tough, this one feels a bit more reassuring. It seems like the crypto market is growing. We remain hopeful.” They maintain a long-term view on Bitcoin.
Despite a 1.7% increase in just the past 24 hours, and over 6% last week, all gains made since President Trump’s reelection have vanished over the last eight months.
“The target of $150,000 for Bitcoin by the end of 2026 does seem high considering the current market correction. Still, we’re optimistic that the cycle will eventually turn,” the analysts expressed, noting they’d continue to watch Bitcoin’s market movements closely.
One potential signal of improvement might come from regulatory developments, with discussions around the Clarity Act having a roughly 50% chance of passing by year-end.
With favorable regulations, analysts foresee an increase in market liquidity and a boost in institutional adoption of cryptocurrencies and blockchain versions of real-world assets.
They don’t anticipate drastic selling from Michael Saylor’s company, which holds a significant amount of Bitcoin, despite recent dividend obligations. Last week, the firm sold $216 million worth of Bitcoin to bolster its cash reserves to over $2.55 billion for dividend payouts.
Bernstein noted that the firm keeps a mix of U.S. dollar reserves to meet dividend expenses for about 17 months, with any major reductions needing board approval. Thus, large-scale forced Bitcoin sales from the firm seem unlikely, suggesting they will remain buyers in the market.
To hit the ambitious year-end target of $150,000, Bitcoin would need to increase nearly 135% from its current price levels.
