Bernstein Reaffirms $200,000 Bitcoin Price Target, Highlights Buying Opportunity During Market Correction

Bernstein continues to maintain its Bitcoin price target of $200,000 within the next 12 months, arguing that the current market correction is presenting an attractive buying opportunity for strategic investors. In a report sent to The Block, Bernstein analysts highlighted that Bitcoin’s drop below $80,000 could be a good opportunity for those looking to enter the market before the bull cycle resumes.

“We believe that prices below $80,000, if market sentiment continues to weaken, will present an attractive risk-reward opportunity for investors over the next 12-18 months as Bitcoin heads toward new cycle highs,” Bernstein analysts wrote. They stressed that the current price correction is temporary and does not change their bullish outlook for Bitcoin's long-term growth.

Bernstein also noted that the Bitcoin market has yet to reach its current cycle high, which they expect could reach close to $200,000 in the next 12 months. This forecast is based on the view that Bitcoin is an emerging "digital gold" asset class, fueled by growing institutional and government involvement.

Bitcoin Price Movements and Market Factors

Bitcoin has been moving within a price range in recent weeks, but in the past 24 hours, the world's largest cryptocurrency has fallen more than 7%, taking its price below $87,000. Bernstein said a number of factors contributed to the decline, including the $1.5 billion hack of the Bybit exchange and the controversy surrounding the Libra token, which was supported by Argentine President Javier Milei.

However, Bernstein also said that the Bitcoin market is currently being affected by macro concerns about high interest rates and deflationary policies. In addition, concerns about AI-related capital expenditure and reports of falling data center prices have also impacted investor sentiment.

Bernstein analysts noted that Bitcoin has a dual nature in the way it trades, similar to US tech stocks with high volatility, but also similar to gold in short-term periods. This creates a potential investment opportunity for investors looking to profit during the upcoming Bitcoin bull cycle.