Analysts at Wall Street brokerage giant Bernstein reportedly think Bitcoin (BTC) will soar toward $70,000 by the end of the year.
According to a new one report by StreetInsider, analysts Gautam Chhugani and Mahika Sapra say in a new research note that the impact of the recently approved spot BTC exchange-traded funds (ETFs) will drive the top crypto asset through market cap price appreciation.
“In a commodity with a known finite supply curve, any incremental purchasing demand on this scale will be material to the price. ETFs still make up 3.5% of total supply, and more than 12% of Bitcoin is still on exchanges, but it’s the net incremental demand that counts as selling pressure is easier to model.”
The Bernstein analysts also believe that US Bitcoin mining companies could expand their operations this year despite the crypto king’s upcoming halving, which is scheduled for April and will see BTC mining rewards halved.
“We expect 15% of high-cost miners to cut production during the upcoming halving, but we expect low-cost and competitive miners to gain relative share (RIOT and CLSK are our preferred picks).”
Chhugani and Sapra also predict that the development of Bitcoin Layer-2 protocols will increase the overall efficiency of the network.
“We also expect that layer 2s will continue to drive transaction revenue for miners and economic activity from token mints and NFT (non-fungible token) ordinals as the Bitcoin developer ecosystem grows.”
Furthermore, they say the macroeconomic landscape could be favorable for the flagship digital asset this year.
“If early election trends point to a regime change post-election and with potential changes in current (crypto-unfavorable) leadership at the SEC (US Securities and Exchange Commission), Bitcoin and the broader crypto market could rebound from these signals , and prices could rise. Add even more fuel to the rally.”
Bitcoin is trading at $44,139 at the time of writing.
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