Firstly, analysts predict that Bitcoin’s next pre-halving rally could begin in the next four months. The upcoming Bitcoin halving is set to blow fresh wind in the sails of Bitcoin-focused stocks such as the Michael Saylor-founded tech firm MicroStrategy. In a research note shared with Cointelegraph, New York-based investment firm Berenberg Capital Markets explained its reasons for a bullish outlook on MicroStrategy, for which Berenberg has given a $430 price target.
Secondly, according to the analysts, MicroStrategy derives the bulk of its value from the 152,333 Bitcoin it held on its books as of June 28, adding that a Bitcoin halving rally could see its shares gain significantly in price. The Bitcoin halving, scheduled for April 26, 2024, reduces the BTC issuance rate by 50%, significantly dampening the velocity at which new Bitcoin enters the crypto market. As Berenberg highlights, previous halvings cycles have seen the price of Bitcoin surge by a minimum of 682%. At the time of the first Bitcoin halving on Nov. 28, 2012, the price of Bitcoin hovered around $12.
Next, 367 days later its price peaked at $1,164. The analysts noted that while Bitcoin’s supply treads a “predetermined path,” the overall demand for Bitcoin needs to be gauged before anyone could predict the “potential magnitude” of a future rally. To measure this, the research looked to the recent surge in spot Bitcoin ETF applications from some of the world’s “largest and highest-profile” asset managers as proof that institutional adoption of Bitcoin is on the rise.
Something else that also drew attention was the investor note to the pro-Bitcoin remarks made by BlackRock CEO Larry Fink on July 5, where he sounded like “a high-conviction Bitcoin maximalist.” The research report was written by equity analyst Mark Palmer, along with associates Matthew Laflash and Hassan Saleem. Also, shares of MicroStrategy are currently trading for $408, having gained nearly 180% since the beginning of 2023, according to data from TradingView. Meanwhile, the price of Bitcoin has increased 84% since the start of the year. Stay tuned for our next hot news!
Mitchelhill, T. (2023, July 11). Bitcoin halving bullish for Saylor’s microstrategy: Berenberg Capital. Cointelegraph. https://cointelegraph.com/news/bitcoin-halving-bullish-microstrategy-michael-saylor