$7.5 trillion crypto market cap? Bernstein says this is what needs to happen
Bernstein, a prominent financial research firm, has outlined a trajectory for the Bitcoin price and cryptocurrency market that it believes could lead to a $7.5 trillion market capitalization.
The projection highlights the firm's bullish outlook on Bitcoin and the wider cryptocurrency market’s future, even as a few are currently pulling back from their recent highs.
Bitcoin price is down more than 6% Tuesday, trading above the $63,000 mark after hitting new highs of more than $73,000 last week. The slide took hold over the weekend.
However, the selling was not limited to Bitcoin as other cryptocurrencies have experienced a decline while US equity futures are down. Ethereum has fallen more than 7%.
The more than 6% fall in BTC has put it on track for its largest one-day fall in two weeks.
Even so, the premier cryptocurrency is up around 50% so far in 2024 and more than 125% in the last 12 months. With Bitcoin surging to new highs last week, profit-taking has occurred, while talk regarding the US Federal Reserve potentially not cutting rates this year has also impacted the price.
Despite the more recent fall, analysts at Bernstein believe the current phase of Bitcoin consolidation is temporary and offers a dip buying opportunity prior to Bitcoin halving.
“We continue to see a cross-cycle 18-month opportunity with Bitcoin and the entire crypto ecosystem,” declared Bernstein.”Overall, Bitcoin is seeing correction ahead of the halving (down ~10% last 7 days). ETF flows are reflexive — higher on the way up and slower with weaker price action.”
“Yesterday, Bitcoin ETFs clocked a net outflow of $154mn, the first outflow day since March 1,” they added. “Historically, Bitcoin price action has consolidated ahead of the halving,
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