Bitcoin, which was trading near $63,000, dropped below $62,000 following news of a sell-off from Strategy.
While the main reason for the recent declines in BTC is the sell-off risk stemming from Strategy, Bernstein analysts analyzed the corrections Bitcoin is experiencing in the current cycle.
Bernstein analysts argue that the corrections BTC is experiencing in the current cycle will be milder than those in past bear markets.
According to The Block, Bernstein analysts stated in their latest report that Bitcoin has fallen 54% from its peak of $126,000, but this correction is significantly milder compared to the 75% to 90% drops seen in past bear markets.
Despite this decline, he stated that his year-end target for BTC is $150,000.
Analysts led by Gautam Chhugani also dismissed concerns about selling pressure on Strategy. They pointed out that even as US mining companies were selling, Strategy had invested approximately $1.4 billion this year, purchasing around 175,000 BTC.
In response, he added that while Strategy may have mandatory sales, these sales would be limited.
Analysts also noted that the current corrections are in their third quarter since the peak of the cycle, stating, “Historically, Bitcoin downtrend cycles have lasted 12 to 15 months, but the current correction period has not yet reached that level, and it is unclear whether the market has fully emerged from the downtrend phase.”
Finally, Bernstein analysts stated that they are maintaining their year-end target of $150,000 for Bitcoin. However, following the recent decline, they now describe this prediction as “ambitious”.
*This is not investment advice.
