Bernstein analysts named the timeframe for Bitcoin reaching a bottom

Bitcoin will reach a local minimum around $60,000 in the first half of the year, analysts believe. Although short-term volatility may persist, experts expect a reversal and the beginning of Bitcoin’s growth.

The investment company’s experts link the current decline of the leading cryptocurrency by market capitalization to the rise in gold prices — investors have shifted to the precious metal after central banks of major countries, including China and India, fueled demand and drove up the asset’s price. According to Bernstein, Bitcoin’s market capitalization has fallen to about 4% of gold’s market capitalization — nearly a two-year low.

Despite Bitcoin’s relative weakness, analysts believe the past two years have been an “institutional cycle” for it. The defining features have been the sharp growth of spot Bitcoin ETFs to $165 billion and the increase in corporate Bitcoin holdings.

The current cycle fundamentally differs from previous boom/bust phases, which were more often driven by retail investor activity, Bernstein says. The key difference is the resilience of corporate investors during the correction. Analysts list the following factors that could make the bear cycle short:

• The outflow from ETFs since the asset peak represents a relatively small share of the total volume.

• There is no large-scale miner capitulation typical of previous cycles.

• Corporate holders, such as Strategy, continue to buy Bitcoin. Since the beginning of the year, they have purchased $3.8 billion worth of BTC despite losses.

Analysts also point to the potentially positive impact of U.S. policy. Quotes could be lifted by events such as the creation of a U.S. strategic Bitcoin reserve, the appointment of Kevin Warsh as Chair of the Federal Reserve, and the overall growing political support for the crypto industry.

The market’s weakness likely reflects a late stage of correction rather than the beginning of a prolonged “crypto winter,” Bernstein representatives hope.

Earlier, CryptoQuant CEO Ki Young Ju suggested that a sharp drop in Bitcoin’s price in the coming months is unlikely and that the leading crypto asset will remain in prolonged stagnation.

See also: "David Schwartz: investors do not believe enough in a high XRP price"

#Bitcoin (BTC) #Crypto Market #Forecast

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