A seasoned analyst from Alliance Bernstein, a global asset management firm, has suggested investors capitalize on the dip in Bitcoin and concentrate on the emerging adoption cycle. This guidance comes in the wake of the U.S. Securities and Exchange Commission’s approval of spot Bitcoin exchange-traded funds (ETFs). The analyst emphasized that the recent minor selloffs present opportunities, given the anticipated asymmetric upside in the future.
“Seize the Decline and Prioritize the Emerging Bitcoin Adoption Phase.”
The senior analyst specializing in digital assets at Alliance Bernstein, Gautam Chhugani, has recommended investors to purchase the Bitcoin dip, as outlined in a client note reviewed by Yahoo Finance.
Last week, the SEC greenlit 11 spot Bitcoin ETFs, sparking anticipation that propelled Bitcoin’s price above $49,000. However, it subsequently dipped to around $42,000, and as of the current moment, BTC is trading at $43,170.14.
In a note from November of the previous year, Alliance Bernstein predicted a Bitcoin price of $150,000 by 2025, with senior analyst Gautam Chhugani attributing this projection to the optimistic outlook on the expected approval of spot Bitcoin ETFs. Chhugani emphasized a neutral assessment of Bitcoin as a commodity, suggesting a turning point in the cycle.
The SEC’s approval of spot Bitcoin ETFs is widely seen as a significant milestone. Alesia Haas, the CFO of crypto exchange Coinbase (Nasdaq: COIN), described it as a “landmark day for crypto” in an interview with Yahoo Finance. However, she tempered expectations by highlighting that widespread cryptocurrency adoption is a gradual process, stating, “This is a long journey, and this is just one step along the way.” Haas anticipates that spot Bitcoin ETFs will attract “trillions of dollars that were previously not able to access crypto assets and not able to access bitcoin.”