Bernstein, a brokerage firm, suggests buying stocks of bitcoin miners Riot Platforms (NASDAQ:RIOT) and CleanSpark (NASDAQ:CLSK) before the upcoming halving event. They predict a positive trajectory for Bitcoin post-halving, once mining hashrates adjust to reduced rewards and ETF inflows increase.
Despite concerns about profitability after the halving, Bernstein remains optimistic about bitcoin mining stocks, noting their potential for strong execution and market leadership in self-mining hashrate.
Analysts Gautam Chhugani and Mahika Sapra point out the historical pattern of Bitcoin price surges after halving events, with recent ETF approvals driving up prices before the halving. However, recent fluctuations, including a 15% decline in the last 10 days, coincide with slower ETF inflows.
Bernstein anticipates a resumption of Bitcoin’s bullish momentum after the halving as mining hashrates adjust and ETF inflows recover. The introduction of spot bitcoin ETFs by wirehouses and registered investment advisors is viewed as a key driver for bitcoin demand, with a projected peak of $150,000 by 2025.
In conclusion, Bernstein recommends taking advantage of the miner fear factor before the halving and investing in RIOT and CLSK stocks for potential long-term growth.
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