US investment firm predicts bullish price action for bitcoin

New York-based investment firm Berenberg Capital Markets predicts a bullish period for bitcoin and is very positive on MicroStrategy’s shares as a result. If you’ve been around the crypto industry for any length of time, you’re no doubt aware of the fact that MicroStrategy invested billions in bitcoin.

Now the next Bitcoin Halving is just around the corner and that makes Berenberg bullish on MicroStrategy.

MicroStrategy and bitcoin

MicroStrategy began sourcing bitcoin in August 2020, amassing over 150,000 bitcoin in less than three years. This makes the listed MicroStrategy perhaps the largest bitcoin investor in the world.

“We expect Bitcoin to repeat its historic pattern of a pre- and post-halving rally,” said Berenberg Capital Markets.

The bitcoin halving is currently scheduled for April 26 and will halve the issuance of new bitcoin from 6.25 to 3.125 bitcoin per block.

Since the start of 2023, MicroStrategy’s stock is up 180 percent, while bitcoin only ~84 percent gained since the start of the new year. This shows that shares of parties such as MicroStrategy trade in practice as a kind of leveraged product of bitcoin.

Positive developments

Berenberg isn’t just bullish on bitcoin because of the approaching halving. After all, that only causes a halving of bitcoin production. Ultimately, demand must also rise to start yet another bull market for bitcoin.

Read Also:  NBA Finals: Game 5 Price to Pay for History

That surge in demand may well stem from the recent explosion in the number of Spot Bitcoin ETF applications in the United States. “Some of the world’s largest asset managers are getting on board, and that’s evidence that institutional adoption of bitcoin is on the rise,” said Berenberg.

For now, the final deadline for the SEC to approve a US Spot Bitcoin ETF is March 19, 2024. BlackRock’s application deadline, for example, is set for February 9, 2024.

When you consider that the next Bitcoin halving is currently scheduled for April 2024, it’s hard not to get a very bullish feeling about this. If we manage to get a US Spot Bitcoin ETF on the market before the halving, the price could just start an explosive bull run in 2024.

Recent Articles

Related News

Leave A Reply

Please enter your comment!
Please enter your name here