Bitcoin
Bernstein Updates His Bitcoin Price Outlook for 2024 By Investing.com
Research and brokerage analysts noted that the price remains stable and without clear momentum, impacted by slower Bitcoin ETF flows following the ‘halving’ event and a successful ETF launch.
Even with the recent slowdown, Bernstein is still betting that the price of Bitcoin will reach $150,000 by 2025 thanks to strong ETF demand flows.
Furthermore, the firm sees the current slowdown as a brief respite amid greater integration of Bitcoin ETFs with private banking platforms and wealth advisors. The Bitcoin mining sector also continues to show health, with major miners consolidating market share.
In the booming economy, the world’s second-largest cryptocurrency has lagged slightly behind Bitcoin with a 42% year-to-date increase. Regulatory hurdles continue to exist, with the SEC’s imminent rejection of an Ethereum ETF due to concerns about the correlation between spot and futures markets, or Ethereum’s classification as a security.
However, Bernstein sees these obstacles as temporary setbacks and expects growth in Ethereum, especially in Layer 2 solutions like Arbitrum, Optimism and Polygon.
Lido dominates the Ethereum staking economy, which Bernstein believes offers high-beta opportunities as the ecosystem expands. The Eigen layer, yet to be launched, is expected to further boost growth in this area and support the recovery of the economy.
Meanwhile, it emerges as a strong competitor to Ethereum, known for its single-layer integrated design, low transaction costs, and fast processing capabilities. Its growing dominance in stablecoin transactions and integration with payments giants like Visa (NYSE:) and Shopify (NYSE:) reflects its potential in conventional and cross-border payments.
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In his latest update, Bernstein also highlights the growing appeal of decentralized finance (DeFi) and the tokenization of real-world assets within his digital asset portfolio. The company notes that investors are moving away from centralized exchanges due to all the regulatory attention and are leaning more towards decentralized or on-chain exchanges like GMX and Synthetix.
Additionally, tokenization of real-world assets is gaining traction among institutional investors. Large financial entities such as BlackRock (NYSE:) and Templeton have launched tokenized money market funds, with assets exceeding $700 million. The total value of tokenized US Treasury bonds has reached around $1.3 billion on the network. Chainlink’s data oracle and tokenization platform are considered essential to supporting this infrastructure, the research notes.
Additionally, Bernstein added Ronin Blockchain to his portfolio as a proxy for the crypto gaming sector. Ronin is the host of the popular game, which has a monthly active user base of around 3 million.
Bernstein’s portfolio serves as a token index for investors seeking direct exposure to cryptocurrency markets, suggesting a tripling of the total cryptocurrency market value to $7.5 trillion over the next 18 to 24 months. For stock investors interested in cryptocurrencies, Bernstein recommends stocks of Bitcoin miners and cryptocurrency trading platforms including Riot Blockchain (NASDAQ:), CleanSpark (NASDAQ:) and Robinhood (NASDAQ:).