Crypto
Bernstein doubles down on $150,000 target for Bitcoin price By Investing.com
Bernstein analysts are confident that is on its way to $150,000 per coin by mid-2025 despite recent market corrections, the broker said in a research report on Tuesday.
The firm cites a shift from sentiment-driven to structurally-driven demand in Bitcoin markets, led by institutional interest and inflows into ETFs. As Bitcoin resumed its upward trajectory after dipping to a low of around $57,000, Bernstein noted the clearing of excess leverage in futures contracts and a positive reversal in ETF outflows.
A major highlight was the Grayscale Bitcoin Trust (BTC) (NYSE:) reporting its first inflow after 78 consecutive days of outflows, a milestone given its impact on market dynamics.
“Bitcoin’s current position at around $64,000 is just the beginning. The structure of the market is far stronger than during the 2021 euphoria at similar levels, largely driven by clear ETF-driven demand,” the report reads.
The bullish outlook is further supported by the sheer volume of cash flooding into Bitcoin ETFs, amassing nearly $12 billion within just three months of their launch. Bernstein expects this trend to persist, driven by increased allocations from private banks, wealth managers, and institutional investors, projecting around $70 billion in new inflows between 2024 and 2025.
The report also points to favorable regulatory developments and corporate adoption, citing companies like Block integrating Bitcoin into their treasury strategies. Moreover, the stability in Bitcoin’s hash rate post-halving and healthy miner transaction fees indicate a resilient mining sector poised for long-term market growth.
Bernstein expects that higher Bitcoin prices and transaction fees will offer miners a buffer even if production costs double post-halving.
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Mining stocks have lagged behind the Bitcoin rally due to investors favoring a “long Bitcoin, short miners” strategy. The rationale behind this approach is the perceived safety in buying spot ETFs compared to mining stocks, which are susceptible to risks associated with the halving.
“Bitcoin mining dynamics are also supporting the market, with public miners expanding capacity and negotiating favorable terms amidst competitive pressures from AI capital expenditures,” Bernstein added.
With all these factors in place, Bernstein remains confident in their $150K Bitcoin target, viewing current prices as an attractive risk-reward opportunity for investors. The firm believes we are in the early stages of a longer and healthier Bitcoin cycle that could extend well into 2025.
Crypto
Top Trader Ditches Bitcoin For Altcoins, 'Dogecoin Killer' Shiba Inu's Potential Breakout And More: This Week In Cryptocurrency
The week was a rollercoaster ride in the world of cryptocurrency. From a top trader’s surprising move to a CEO’s political warning, the crypto market was buzzing with activity. Here’s a quick recap of the top stories that made headlines.
Top Trader Ditches Bitcoin for Altcoins
Renowned cryptocurrency trader Michael van de Poppe shocked the market by announcing that he had sold all his Bitcoin holdings to invest in altcoins. Despite Bitcoin’s recent weak price action, Van De Poppe clarified that his decision was not due to a loss of faith in Bitcoin. Read the full article here.
Uniswap CEO’s Political Warning
Hayden Adams, CEO of Uniswap UNI/USD, criticized the Biden administration for underestimating the political significance of cryptocurrency. Adams likened the administration’s oversight to a severe strategic miscalculation, expressing concern that this could alienate a significant voter base and impact campaign funding. Read the full article here.
See Also: ‘Dogecoin Killer’ Shiba Inu Pumps 6%: ‘I Felt Underexposed,’ Says Trader Who Sees More Short-Term Upside
Millionaire Trader’s Meme Coin Success
Trader ‘Bonk Guy’ revealed a seven-figure profit in 48 hours trading AMC AMC/USD and GameStop GME/USD derivatives on Solana. Bonk Guy invested around $155,000 in trade, which is currently worth $1.3 million, marking 641% gains. He believes the real “meme coin season” hasn’t even begun yet. Read the full article here.
‘Dogecoin Killer’ Shiba Inu’s Potential Breakout
Crypto trader Javon Marks predicts that ‘Dogecoin Killer’ Shiba Inu SHIB/USD could surpass its all-time high of $0.000088598, implying a price appreciation of over 282% from current levels. Marks suggests that the meme coin is currently in an “intermission” phase before continuing its upward trajectory. Read the full article here.
Dogecoin’s Potential Resurgence
Crypto Kaleo expressed his belief in Dogecoin’s DOGE/USD resurgence, attributing it to the retail sector’s renewed risk appetite. He emphasized Dogecoin’s enduring relevance, stating, “Dogecoin isn’t dead. As soon as it starts to catch a bit of a bid, it will move vertical once again.” Read the full article here.
Read Next: Donald Trump’s Election Odds Just Spiked To 51% According To This Crypto Prediction Market
Read Next: Why This Crypto Market Is ‘A Bear Trap’ And Which Coins This Trader Is Backing
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Crypto
Crypto lender Genesis to return $3 billion to customers in bankruptcy wind-down
Crypto lender Genesis Global received a significant victory in bankruptcy court on Friday, securing approval for its liquidation plan that will return approximately $3 billion in cash and cryptocurrency to its customers. The ruling, however, delivers a blow to Genesis’s owner, Digital Currency Group (DCG), which will receive no recovery from the bankruptcy.
U.S. Bankruptcy Judge Sean Lane overruled DCG’s objection to the plan, which centred on the valuation of crypto assets. DCG argued that customer claims should be capped at the value of cryptocurrencies in January 2023, when Genesis filed for bankruptcy. Crypto prices have surged since then, with Bitcoin, for example, rising from $21,084 in January 2023 to its current price of around $67,000.
Judge Lane rejected DCG’s argument, stating that even with the lower valuation, Genesis would have to prioritise paying other creditors, including federal and state financial regulators with claims totalling $32 billion, before distributing funds to its equity owner.
“There are nowhere near enough assets to provide any recovery to DCG in these cases,” Judge Lane wrote in his ruling.
Genesis aims to return funds to customers in cryptocurrency wherever possible, although it lacks sufficient crypto assets to fully repay all outstanding claims.
Sean O’Neal, an attorney representing Genesis, refuted DCG’s assertion that customers could be paid in full based on the lower January 2023 valuations. “We don’t buy into the idea that claims are capped at the petition date value,” O’Neal stated.
Genesis initially estimated in February that it could repay up to 77% of the value of customer claims, subject to future fluctuations in cryptocurrency prices.
This court approval marks a significant step forward in the resolution of Genesis’s bankruptcy, providing much-needed relief to its customers while leaving its owner, DCG, without any financial recovery.
Crypto
Venezuela to shut down cryptocurrency mining farms
Venezuela’s Ministry of Electric Power announced it would disconnect all cryptocurrency mining farms from the national power grid (SEN, Sistema Electrico Nacional). The measure aims to control the high energy demand from these mining farms and ensure reliable service for citizens.
AlbertoNews, a local media outlet, reported the announcement on May 18.
“The purpose is to disconnect all cryptocurrency mining farms in the country from the SEN [National Electrical System], avoiding the high impact on demand, which allows us to continue offering an efficient and reliable service to all the Venezuelan people,”
the Ministry reported in its account in Instagram.
Notably, the announcement followed the seizure of 2,000 cryptocurrency mining machines in the country. This action is part of the government’s ongoing anti-corruption campaign. Leading to the arrests of several officials from state institutions.
Corruption with the National Superintendency of Cryptoassets
The National Superintendency of Cryptoassets (Sunacrip) has been under a restructuring board since the arrest of Superintendent Joselit Ramírez. Ramírez has connections to Tareck El Aissami, former Petroleum Minister and former president of Petróleos de Venezuela (PDVSA).
On that note, El Aissami was charged with treason, embezzlement, misuse of influence, money laundering, and criminal association.
Venezuela power grid issues and cryptocurrency mining
Venezuela has faced an ongoing electricity crisis since 2009, worsened by massive blackouts in 2019 that left cities without power for up to seven days. Frequent power outages have negatively affected the country’s quality of life and economic activities.
Therefore, Governor of Carabobo state, Rafael Lacava confirmed restrictions on cryptocurrency mining farms due to their significant electricity consumption. He urged residents to report illegal cryptocurrency mining operations to prevent power shortages.
“If you, neighbor, see a house that you know, tell that person to turn off the farm, or else report it, because when they turn off the light, because you have to give light to a man so that he can earn some reales (money), you are left without electrical service.”
– Rafael Lacava
As reported by AlbertoNews, experts attribute the crisis to poor maintenance and inadequate investment in the power grid. Meanwhile, the government blames sabotage and has promised to modernize the state-controlled power network.
Overall, Bitcoin (BTC) and cryptocurrency mining are known worldwide for their high energy consumption. Countries like China and Cazaquistan have banned the activity to preserve their power grids, centralizing mining in fewer locations.
Therefore, the fewer countries allowing this activity, the higher the security concerns will be, as a few miners dominate block discovery.
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