Bitcoin (BTC) Price Target Hiked to $200K by Bernstein as ETF Flows Surprise

Bitcoin price rose marginally on Thursday as investor sentiment remains muted amid ongoing concerns about prolonged high interest rates and global economic health.

Bitcoin price showed a marginal increase on Thursday, with broader investor sentiment remaining subdued amid concerns about prolonged high interest rates and the health of the global economy.

By 06:57 ET (10:57 GMT), Bitcoin rose 0.8% to $66,031.2, but remained down 2.8% for the week after dipping below $65,000 on Tuesday for the first time since May 16.

Higher-for-longer rate narrative caps Bitcoin’s potential for gains

Crypto prices, including Bitcoin, have been largely rangebound as investor enthusiasm for riskier assets has been countered by the prospect of sustained high U.S. borrowing costs.

Several Federal Reserve officials stressed the need for further progress in controlling inflation, despite last week’s weaker-than-expected U.S. price growth data. This led the U.S. central bank to now project only one interest rate cut this year, versus the previous expectation of three cuts.

This narrative helped the dollar steadier, with the dollar index, which tracks the greenback against a basket of six other currencies, up 0.2% over the past five days. A stronger dollar usually makes Bitcoin less appealing, as it strengthens dollar-denominated assets in relation to riskier investments like cryptocurrencies.

In the near-term, analytics firm Glassnode highlighted a potential rebound for BTC toward the $67,000 level. This threshold could present resistance, and a breakout might set the stage for an even higher target around $69,500.

On the other hand, the $65,000 level is seen as a key psychological support, which could be crucial in maintaining investor confidence.

Crypto price today: Altcoins show modest gains

Following Bitcoin, most major altcoins also showed slight gains on Thursday.

World no.2 token ETH/USD added 1.1% to $3,597.04, while Cardano rose 1.4% and XRP gained 1%. On the other hand, Solana slipped 0.5%.

Among meme tokens, DOGE/USD edged up 0.6%, and the Investing.com Shiba Inu Index rose 0.4%.

Bernstein hikes Bitcoin price target to $200K

Earlier this week, Bernstein analysts raised their Bitcoin price target to $200,000 from $150,000 "to reflect the positive surprise from Bitcoin ETF flows since launch.”

The firm highlighted that Bitcoin and crypto-related stocks are still undervalued and poised to see greater institutional interest as regulatory concerns recede.

"We remain convinced in our Bitcoin new cycle thesis," added Bernstein. "Institutional investors have adopted Bitcoin, and global asset managers have seen some crypto success. We see crypto bystanders next in line to drive demand."

Bernstein analysts also noted a 150% surge in Bitcoin since BlackRock (NYSE:BLK) filed its application for a Bitcoin ETF, highlighting the significance of such ETFs.

The note also touched upon skepticism from bears, who argue that ETF flows aren't genuine and largely driven by 'cash & carry trade' rather than 'net long' positions.

Bernstein viewed this as a "trojan horse" for adoption, with investors likely to shift to 'net long' positions as ETF liquidity improves. While early allocations were largely retail, they anticipated strong institutional growth, expecting approval for ETFs at major financial institutions by Q3/Q4.

“Tactically, low to mid $60Ks/high 50Ks (if we get there) should be interesting entry points,” added Bernstein.

News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-btc-price-target-hiked-k-bernstein-etf-flows-surprise.html

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