Bernstein, a notable brokerage firm, has elevated its year-end price target for Bitcoin (BTC) to $90,000 from the previously set $80,000. This adjustment comes alongside revised projections for mining stocks under its purview, suggesting a bullish outlook on the cryptocurrency and its mining industry.
Optimism in the Crypto Mining Sector
In a recent research report, analysts Gautam Chhugani and Mahika Sapra shared their insights, pointing to a new bull cycle for Bitcoin, bolstered by strong ETF inflows, aggressive expansion by miners, and record-high revenues. They highlighted Bitcoin miners as particularly attractive investments for equity investors keen on gaining exposure to the crypto cycle.
Revised Hashrate Reduction Expectations
One key update in Bernstein’s analysis is the anticipated impact of the upcoming Bitcoin halving on the network’s hashrate, which measures the total computational power used in mining and transaction processing. Previously estimating a 15% reduction in hashrate due to miner shutdowns post-halving, Bernstein now forecasts a more modest 7% decrease. The halving event, which cuts mining rewards in half, is a significant occurrence in the Bitcoin ecosystem and is expected to take place in mid-April.
Adjustments to Mining Stock Targets
In light of these projections, Bernstein has also revised its price targets for several mining stocks:
- CleanSpark (CLSK) has seen its price target adjusted to $30 from $14.20, reflecting significant optimism about the company’s prospects.
- Riot Platforms (RIOT) had a slight decrease in its price target, from $22.50 to $22.
- Marathon Digital (MARA) received a substantial increase in its target, set now at $23, up from $14.30.
The closing prices on Wednesday before the report’s release showed CleanSpark at $20.25, Riot at $12.40, and Marathon at $22.43.
Mining Sector Leaders
Bernstein’s report specifically identifies Riot and CleanSpark as poised to become sector leaders, citing their status as the “largest miners with the largest self-mining capacity.” This distinction points to their significant role in shaping the future landscape of Bitcoin mining.
Bernstein’s revised Bitcoin price target and updated mining stock estimates signal growing confidence in the cryptocurrency market’s strength and resilience, particularly within the mining sector, as it approaches another halving event.
