Bernstein unveils outperform-rated miners to buy before bitcoin halving
Analysts from Bernstein remain confident that the bitcoin price can surge to $150,000 by next year.
Following the upcoming bitcoin halving, currently scheduled to occur on April 19, analysts from Bernstein have listed recommendations for bitcoin miner stocks projected to outperform in the volatile digital assets market.
A new research report from Bernstein named investments in miners like CleanSpark and Riot Platforms at the top of the list, rating them high for their self-mining hash rate, or the computational power to mine and process blockchain transactions.
In the lead-up to the halving, which will see the bitcoin subsidy issued to miners plunge from 6.25 bitcoin to 3.125 per block, both stocks have been underperforming, potentially giving investors an opportunity to take advantage of low prices. Other investment vehicles tracking bitcoin miners, like the Valkyrie Bitcoin Miners exchange-traded fund (ETF) – which holds CleanSpark, Bitdeer and Core Scientific, among other publicly-traded miners that have recently seen a significant drops in value as well.
However, Bernstein analysts noted that mining stocks hold a financial buffer from the revenue they’re pulling in from bitcoin’s recent price rallies.
“Historically, bitcoin price breakout has always followed the halving event and sometimes a few months after halving,” Bernstein analysts Gautam Chhugani and Mahika Sapra noted. “However, in the current 2024 cycle, the exchange-traded fund (ETF) approvals in January led to a strong price appreciation pre-halving."
The analysts noted that spot bitcoin ETFs were bringing “retail liquidity” to the market, and the broker forecast that bitcoin, the world's largest cryptocurrency by market cap, might skyrocket to $150,000 by next year:
“We continue to expect bitcoin to touch a cycle high of $150,000 by 2025,” the analysts said.
Despite the fact that in the previous 10 days, the price of the world’s largest cryptocurrency plunged 15%, Bernstein analysts expect the price to rebound post-halving, as hash rates accommodate decreased bitcoin rewards and inflows to spot bitcoin ETFs climb. The bitcoin ETFs, which give mainstream investors the opportunity to invest indirectly in bitcoin, “will continue to provide structural demand for bitcoin,” the analysts pointed out.