Bernstein reiterates its prediction for BTC to rise to $150n000 amid slowing inflows into ETFs

What’s new? Analysts at broker Bernstein have called the slowdown in inflows into spot bitcoin exchange-traded funds (ETFs) a “short-term pause.” In their view, such products will soon be more closely integrated with the platforms of private banks, brokers, and investment advisors. In this regard, the experts left in force their previously repeatedly announced prediction for the BTC exchange rate to reach the $150 000 mark by the end of 2025.

Material by The Block

What else is known? The inflow of funds into spot bitcoin ETFs launched in the United States on January 11 has slowed significantly since reaching a daily record of $1,05 billion on March 12. Two days later, the first cryptocurrency hit an all-time record above $73 500.

According to analysts, it will take time for investment advisors to find the recommendation to invest in bitcoin funds acceptable and for platforms to establish a regulatory framework for the sale of such products.

Earlier, media reported that Morgan Stanley may allow its 15 000 brokers to recommend that clients buy shares of spot BTC ETFs.

Bernstein maintained its previous prediction for BTC to grow 2,5 times from current levels. They cite the net inflow of funds into BTC ETF of $12 billion and the stable position of leading bitcoin miners after the halving amid market consolidation and normalization of transaction fees at about 10% of miners’ income.

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The fourth halving of the bitcoin network, which occurs every four years, took place on April 20 and resulted in a reduction in the reward to miners per mined block from 6,25 to 3,125 BTC. The event also slowed the issuance and volume of new coins coming into circulation. Bitcoin’s total supply is capped at 21 million coins, with 19,7 million mined at the time of writing. After the halving, an average of 450 coins are mined per day.

Weekly crypto derivative outflows hit its highest since March

Inflows into spot BTC ETFs are gradually slowing down

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According to Farside, since March 15, inflows into spot BTC ETFs have held in a narrow range around the $12 billion mark for a long time before beginning a gradual decline. Analyst Ali Martinez, citing data from the Santiment platform, also notes that the activity of large holders of bitcoin has been declining since mid-March.