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Research and brokerage firm Bernstein remains optimistic about the future of the cryptocurrency market despite the recent slowdown in spot bitcoin exchange-traded fund (ETFs) flows.
What Happened: In a recent research note, Bernstein analysts Gautam Chhugani and Mahika Sapra suggested that the Bitcoin lull is temporary. They expect an upward trajectory, with Bitcoin potentially reaching a $150,000 price target by the end of 2025, The Block reported.
The integration of Bitcoin ETFs into mainstream financial platforms, such as private banks, wealth advisors and brokerages, will require time, they say. These institutions develop the necessary compliance frameworks.
Chhugani and Sapra also point to the impressive $12 billion in net inflows since the launch of spot bitcoin ETFs and the robust performance of leading Bitcoin miners post-halving as indicators of the markets underlying strength. Loading… Loading…
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Ethereum ETFs: The analysts predict that if the U.S. Securities and Exchange Commission (SEC) denies spot Ethereum ETFs, it would likely be overturned in court.
They drew parallels to the Grayscale Bitcoin ETF case and cited the inconsistent correlation between spot and futures markets.
If the SEC were to deny on the basis of ether being classified as a security, it would create a conflicting situation with the Commodity Futures Trading Commission (CFTC), which views ether as a commodity.
In either scenario, the analysts suggest that an SEC denial could shift the market focus back to ether, which they believe offers an appealing risk-reward profile given its recent underperformance relative to bitcoin. This renewed attention could also benefit ETH-beta Layer-2 tokens, such as Arbitrum ARB/USD , Optimism OP/USD , and Polygon MATIC/USD .
The Bernstein analysts also highlighted the growth potential of various other crypto niches and projects. They noted Solanas SOL/USD strong position in crypto payments, the expanding influence of DeFi platforms like Uniswap UNI/USD , GMX GMX/USD , and Synthetix SNX/USD , and the real-world asset market.
In conclusion, Chhugani and Sapra reaffirmed their projection that the total crypto market cap will surge to $7.5 trillion within the next 18 to 24 months, even amid the current market consolidation. The analysts remain optimistic about the long-term prospects of the asset class and its capacity to transform traditional financial structures.
Whats Next: These topics are expected to be thoroughly explored at Benzingas upcoming Future of Digital Assetsevent on Nov. 19.
Read Next:Bitcoin And Ethereum Take Center Stage According To Coinbase Q2 Crypto Market Guide
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