Bitcoin FOMO Rally: Analysts Predict Record Highs
Bitcoin Surges Past $48,000 Mark
Bitcoin experienced a remarkable 13% surge last week, crossing the $48,000 mark and inching closer to the crucial $50,000 resistance level.
Bitcoin’s Journey Towards Record Highs
Despite a 160% increase in 2023 and maintaining resilience in 2024, Bitcoin’s current popularity still falls short of previous peaks. However, analysts at Bernstein believe that the best days for Bitcoin are yet to come, driven by the fear of missing out (FOMO) in the ETF-driven market.
Bitcoin ETFs as Price Catalysts
Bernstein analysts noted that Bitcoin ETFs are becoming clear price catalysts for the cryptocurrency. They observed a significant decrease in outflows from Grayscale Bitcoin Trust, while new ETFs attracted close to $1 billion in the last two trading days. This shift has notably improved market sentiment, paving the way for potential record highs.
The Impact of ETF Launch on Bitcoin
Analysts believe that the money flowing into Bitcoin is predominantly coming from “believers” who have found an easy way to invest in Bitcoin through ETFs, while the “disbelievers” remain hesitant. The initial interest in Bitcoin is also coming from new investors keen to learn more about it.
Revised Bitcoin Rally Forecast
Bernstein initially anticipated a rally in Bitcoin’s value after its halving event, but the extraordinary success of the ETF launch has led them to adjust their forecast. They now expect a significant Bitcoin rally to occur before the halving, advising potential investors to pick their preferred companies and maintain their investments through the halving event in April 2024.
Top Picks in Bitcoin Mining
Bernstein’s top picks in the Bitcoin mining category are Riot Platforms and CleanSpark, recommending investors to consider these companies for potential growth in the evolving Bitcoin landscape.
