Bernstein analysts are convinced the flagship digital asset will continue on a bullish trajectory amid the incoming halving event that will reduce Bitcoin’s monthly selling pressure to less than $500 million.
Bitcoin (BTC) opened the fourth week of November with a renewed bullish outlook fueled by the victory of Argentina’s pro-Bitcoin and anti-CBDC President Javier Milei. The stability and economic balance of the mother coins have undeniably impressed a lot of institutional investors seeking to protect their wealth from mainstream inflation. According to our latest market data, Bitcoin’s daily average trading volume has spiked about 37 percent in the past 24 hours to about $15 billion amid possible correction in the coming weeks.
Moreover, despite the daily golden cross between the 50 and 200 Moving Averages (MA), Bitcoin price has been forming a possible head and shoulder (H&S) pattern coupled with a bearish Relative Strength Index (RSI).
Bernstein on Bitcoin Positive Fundamentals
According to a report released by Bernstein Wealth Management, Bitcoin will emerge as a global macropolitical asset with its market cap rallying exponentially over $3 trillion by mid-2025. The bold prediction by Bernstein is based on the fact that the fourth Bitcoin halving is about 135 days. Additionally, Bernstein analysts led by Gautam Chhugani highlighted that Bitcoin’s fundamentals have never looked better than now as 70 percent of the circulating supply is held by long-term investors who have not moved the coins in the past year.
“This is an all-time high in Bitcoin’s history – these churn rates are extraordinary for a financial asset, particularly one known for its exponential moves driven by a supply squeeze,” Bernstein analysts wrote.
According to the Bernstein report, the high selling pressure emanating from miners and whales taking profit will significantly drop in less than six months. Moreover, the report expects Bitcoin’s selling pressure to drop below half a billion US dollars per month from the current $1 billion. Ideally, the Bernstein analyst argued that the higher demand – caused by the mainstream adoption, incoming US spot BTC ETF, and halving of the annual inflation from 1.84 percent to less than 1 percent – will make the flagship digital asset even more rare.
Notably, the Bernstein analysts are convinced the United States Securities and Exchange Commission (SEC) will approve several spot Bitcoin ETFs during the first half of 2024, following increased engagements between the agency and the respective fund managers. Furthermore, the analyst highlighted that Bitcoin has proved to be a better hedge against high fiat inflation as most central banks struggle to bring down inflation with rising interest rates.
Meanwhile, Bitcoin price has rallied more than $116 percent YTD to trade around $37.2k on a Monday during the early New York trading session.