Bitcoin, which was trading near $63,000, fell below $62,000 following the strategy’s announcement of a massive sell-off.
Although the main reason for recent declines $BTC is the sell-off risk arising from the strategy, Bernstein analysts analyzed the corrections that Bitcoin is experiencing in the current cycle.
Bernstein analysts say corrections $BTC The current cycle will be milder than past bear markets.
According to The Block, Bernstein analysts said in their latest report that Bitcoin fell 54% from its high of $126,000, but this correction is significantly milder than the 75% to 90% declines seen in previous bear markets.
Despite the drop, he said his year-end target $BTC is $150,000.
Analysts led by Gautam Chhugani also dismissed concerns about selling pressure on the strategy. They pointed out that even as U.S. mining companies were selling, Strategy had invested about $1.4 billion this year, buying about $175,000. $BTC.
In response, he added that even if Strategy could impose mandatory sales, those sales would be limited.
The analysts also noted that the current corrections are in their third quarter since the cycle peak, stating: “Historically, Bitcoin downtrend cycles have lasted 12 to 15 months, but the current correction period has not yet reached that level, and it is unclear whether the market has completely exited the downtrend phase.
Finally, Bernstein analysts said they are maintaining their year-end target of $150,000 for Bitcoin. However, following the recent decline, they are now calling this forecast “ambitious.”
*This does not constitute investment advice.
