Despite slowing inflows into Bitcoin investment funds, Bernstein analysts note that the cryptocurrency market remains in good health.
Bitcoin spot ETFs recorded fund outflows totaling $51,5 million on Tuesday. This, compared to the funds' early trading days, which saw several hundred million dollars in inflows, exposes a notable slowdown in the market.
However, according to Bernstein analysts Gautam Chhugani and Mahika Sapra, it is quite likely that this slowdown is temporary and that the Bitcoin fund market will regain investor interest, even more so as the cryptocurrency is gaining greater recognition as a legitimate investment asset in different markets.
Bitcoin price will be $150k in 2025, says Bernstein
Chhugani and Sapra published a recent report, highlighting that Bitcoin needs “a natural gestation time” to establish itself as the new preferred financial and investment asset class par excellence.
Similarly, Bernstein analysts indicated that the trading platforms of private banks, wealth advisors and managers, and brokerage firms also need time to adapt their compliance frameworks to sell investment products and spot Bitcoin ETFs to their clients. However, all of this will offer an invaluable opportunity for Bitcoin to “become an acceptable portfolio allocation recommendation,” allowing its market to grow.
Given the imminent growth that foresee According to Bernstein analysts for Bitcoin, the value of the cryptocurrency is likely to increase as its adoption levels grow, and its unit price will reach $150.000, on average, by the end of 2025.
Therefore, Bernstein's predictions for the price of Bitcoin next year remain optimistic, despite cooling investor interest in the cryptocurrency.
The health of the mining sector reinforces bullish predictions
Regarding Bitcoin mining, Chhugani and Sapra said the sector remains healthy following the halving, the block reward halving event, which is scheduled to occur on the Bitcoin blockchain every 210.000 blocks, or approximately every 4 years.
Historically, the arrival of this event affects the profitability of network miners in the short term, as they tend to take their less profitable equipment offline due to reduced income. However, Bernstein analysts highlighted that the Bitcoin fee market remains stable, which is leaving a good profit margin for miners, helping to minimize the temporary impact of the halving on the profitability of this activity.
In addition to Bernstein, other prominent voices from the world of finance and cryptocurrencies, such as the CEO of Ark Invest, Cathie Wood and the firm Standard Chartered, predict a recovery and significant increase in the price of Bitcoin for next year.
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