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Bernstein Recommends Betting on Bitcoin Miner Stocks Ahead of Halving

Pre-halving is the time to stack up on miner stocks, according to Bernstein

In light of the upcoming 2024 Bitcoin halving, investment firm Bernstein advocates for purchasing stocks of leading Bitcoin miners, predicting a resurgence in Bitcoin's price following the event.

Key takeaways:

  • Bernstein highlights the current market opportunity to invest in leading Bitcoin miner stocks due to the upcoming halving.
  • The firm projects a significant rise in Bitcoin's value, potentially reaching $150K by 2025, driven by resumed ETF inflows and hashrate adjustments.

Bernstein's latest research report identifies a prime investment opportunity in Bitcoin miner stocks, particularly Riot Platforms (RIOT) and CleanSpark (CLSK), citing their market leadership and operational efficiency. Released on Wednesday, the report addresses the heightened "miner fear factor" as the Bitcoin halving nears — a scheduled event around April 19-20 that will reduce mining rewards by 50%. This reduction impacts the profitability of mining but historically precedes significant price increases in Bitcoin.

Analysts Gautam Chhugani and Mahika Sapra emphasize: 

"Historically, bitcoin price breakout has always followed the halving event and sometimes a few months after halving." 

They note that this cycle deviates slightly due to strong price appreciation early in the year, driven by ETF approvals in January.

Post-halving market outlook

Despite a recent 15% drop in Bitcoin prices influenced by slower ETF inflows, Bernstein remains optimistic about the cryptocurrency's prospects. The firm anticipates that once mining hashrates adjust to the lower rewards, and ETF inflows pick up, Bitcoin’s bullish trajectory will resume. The analysts predict: 

"We continue to expect bitcoin to touch a cycle high of $150K by 2025."

The report also points to the ongoing rollout of spot Bitcoin ETFs by wirehouses and registered investment advisors (RIAs) as a key factor that will sustain demand for Bitcoin, underpinning its long-term value increase.