Brokerage firm Bernstein recommends buying shares of Bitcoin miners Riot Platform (NASDAQ:RIOT) and CleanSpark (NASDAQ:CLSK) ahead of the impending halving event. They predict a bullish trajectory following the Bitcoin halving as mining hashrate adjusts to the reduced rewards and ETF inflows increase.
Despite concerns about profitability following the halving, Bernstein maintains a positive outlook on Bitcoin mining stocks, citing superior execution and the potential for market leadership in its own mining hashrate.
Analysts Gautam Chhugani and Mahika Sapra highlight the historical trend of Bitcoin price breakouts following halving events, with the recent ETF approval fueling the pre-halving price rally. However, recent volatility, including a 15% drop over the past 10 days, is consistent with a slowdown in ETF inflows.
Bernstein expects Bitcoin’s bullish momentum to resume post-halving as mining hashrate adapts and ETF inflows recover. The launch of spot Bitcoin ETFs by brokerages and registered investment advisors is considered a structural driver of Bitcoin demand, with an expected cycle high of $150,000 by 2025.
In summary, Bernstein suggests seizing the opportunity presented by the pre-halving miner scare factor and investing in RIOT and CLSK stocks for potential long-term gains.
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