Despite a recent decline from its record highs on March 14, Bitcoin continues to capture investor interest, with Bernstein raising its year-end forecast early Thursday. As cryptocurrency prices and related stocks rally briskly, Bernstein’s revised outlook underscores growing optimism in the digital asset space.
Bernstein’s Upbeat Bitcoin Forecast
Bernstein raised its bitcoin price target to $90,000 by the end of the year, up from the prior outlook of $80,000. This optimistic revision reflects the firm’s bullish sentiment towards Bitcoin’s trajectory. Additionally, Bernstein boosted its outlook on cryptocurrency mining stocks, citing Bitcoin’s surge near $74,000 and the positive reception to new spot Bitcoin ETFs.
Analysts’ Insights of Bitcoin Forecast
Analysts Gautam Chhugani and Mahika Sapra highlighted several factors driving their positive forecast, including a new bitcoin bull cycle, strong ETF inflows, aggressive miner capacity expansion, and all-time high miner dollar revenues. They emphasized that bitcoin miners remain compelling buys for equity investors seeking exposure to the crypto cycle.
Impact on Mining Stocks
Bernstein’s revised forecasts have implications for key mining stocks. The firm raised its price target on CleanSpark (CLSK) to $30 from $14.20, maintaining an outperform rating. Similarly, Marathon Digital (MARA) saw its price target raised to $23 from $14.30. However, Riot Platforms (RIOT) had its price target lowered to $22 from $22.50, although the firm retains an outperform rating on the stock.
Stock Performance
CLSK stock witnessed a slight uptick on Thursday, adding to its robust rally for the week, with gains of nearly 16%. Riot Platforms, on the other hand, experienced a slight decline, reflecting a broader trend of 12% lower performance for the month. Despite the recent slide, Bitcoin-related stocks continue to attract investor attention.
Bitcoin’s Current Status
Bitcoin traded near $66,300 on Thursday, up 7% from its 24-hour lows. While the cryptocurrency experienced an all-time high of $73,798 on March 14, it has since retreated below its prior peak of $68,990 set in November 2021. Nevertheless, Bitcoin remains up approximately 55% year-to-date, with significant gains observed in February and March.
Market Reaction
MicroStrategy (MSTR) recorded an 8% gain, indicating growing investor confidence in Bitcoin-related companies. Coinbase Global (COIN) also saw a notable jump of 4.9%, reflecting broader market optimism surrounding cryptocurrency assets.
Despite recent fluctuations, Bitcoin’s resilience and the optimistic outlook from Bernstein underscore the enduring appeal of digital assets. As the cryptocurrency market continues to evolve, investors remain keenly focused on Bitcoin’s trajectory and its implications for related stocks. With growing institutional interest and ongoing developments in the crypto space, Bitcoin’s journey towards mainstream adoption remains a key theme to watch in the coming months.
Source: Investor’s Business Daily
