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Bernstein recommends purchasing bitcoin miners Riot Platforms and CleanSpark ahead of the halving.
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Bitcoin’s bullish trajectory will resume after the reward halving, Bernstein said.
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The broker maintained its cycle high forecast of $150,000 in 2025.
The ‘miner fear’ factor is at its peak ahead of the upcoming halving, and investors should buy better performing Riot Platforms (RIOT) and CleanSpark (CLSK) as the market will reward these companies for their superior execution and for fact that they are the market leader through self-mining hashrate, broker Bernstein said in a research report on Wednesday.
Bernstein notes that mining stocks have underperformed against bitcoin {{BTC}} so far this year, as the halving raised concerns about profitability once rewards were cut by 50%. The quadrennial event slows down the growth rate of bitcoin supply and will be around 40% April 19-20. Hashraat refers to the total combined computing power used to mine and process transactions on a proof-of-work blockchain.
“Historically, the bitcoin price breakout always followed the halving and sometimes even a few months after the halving,” wrote analysts Gautam Chhugani and Mahika Sapra.
“In the current 2024 cycle, however, the exchange-traded fund (ETF). Approvals in January led to a strong price increase ahead of the halving,” the authors wrote, noting that bitcoin has only fallen as much as 15% in the past ten days, following slower ETF inflows.
The broker said it expects bitcoin’s bullish trajectory to resume post-halving once mining hashrates adjust to lower rewards and ETF inflows resume.
The rollout of spot bitcoin ETFs by wirehouses and registered investment advisors (RIAs) “will continue to drive structural demand for bitcoin,” Bernstein said. “We continue to expect bitcoin to reach a cycle high of $150,000 in 2025.”
Read more: Bitcoin Miner CEOs Are Optimistic About Halving, Expect Mergers & Acquisitions: Bernstein
