Bernstein: Bitcoin's target at $200,000 "high conviction but conservative"
In a client memo on Monday, Bernstein analysts reaffirmed their conviction in Bitcoin, maintaining a "high conviction price target but conservative" at $200,000 for this cycle.
However, the latest "Digital Asset Memo" highlights the broadening public interest in the financial innovation sparked by blockchain technology, surpassing Bitcoin's use case as a "store of value".
Bernstein notes that while many investors distinguish between "blockchain (a useful technology) and cryptocurrencies ('useless')", this distinction has become less clear.
The analysts point to stablecoins and token-driven financial applications being built on public blockchain networks like Ethereum, which has "the largest market share".
They argue that "if real companies and institutional investors are innovating on the blockchain, doesn’t that make blockchain networks, and therefore, blockchain network assets (like ETH) valuable?"
The report highlights that the cryptocurrency market cycle began with the institutionalization of Bitcoin, as evidenced by the successful launch of spot Bitcoin ETFs, which now manage nearly $120 billion in assets.