Wall Street Giant Goes All-In on Bitcoin

TLDR

• Bitcoin hits new all-time high of $89.6k
• Bernstein Research advises investors to “buy everything you can” in crypto
• Bitcoin becomes 8th largest asset globally, surpassing silver with $1.76T market cap
• Analysts predict Bitcoin could reach $125k by New Year’s and $200k by 2025
• Pro-crypto regulatory environment expected under new administration

Bitcoin’s meteoric rise continued this week as the cryptocurrency reached a new all-time high of $89,600, prompting major Wall Street firm Bernstein Research to issue a bold directive to investors: “Buy everything you can.”

The groundbreaking price milestone comes as Bitcoin officially surpassed silver to become the eighth-largest asset worldwide by market capitalization, now valued at $1.76 trillion.

This latest achievement positions the cryptocurrency just behind Saudi Aramco, the world’s largest oil company.

Bernstein Research, known for its conservative market analysis, released an unusually enthusiastic advisory note on Monday.

The firm’s analysts, led by Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia, emphasized that the current market conditions present a unique opportunity for investors to increase their cryptocurrency exposure.

The timing of Bernstein’s recommendation appears linked to recent political developments in Washington. The analysts pointed to a shifting regulatory landscape following the U.S. election results, suggesting that previously hesitant investors should reassess their position on crypto investments.

Looking ahead, Bernstein maintains an optimistic price target for Bitcoin, projecting it could reach $200,000 by next year. Despite Bitcoin’s substantial year-to-date gains of 87%, the firm believes the risk-reward ratio remains favorable for investors over the next 12 months.

Veteran trader Peter Brandt added weight to the bullish outlook with his own analysis. Through a post on X (formerly Twitter), Brandt identified a pattern of buying opportunities that emerged between March and October 2024. He suggests these patterns could lead to a sustained upward “mark-up” phase, potentially pushing Bitcoin’s price to $125,000 by New Year’s.

The surge in Bitcoin’s value has broader implications for the cryptocurrency market as a whole. Bernstein’s recommendations extend beyond Bitcoin to include several other digital assets. The firm specifically highlighted Ethereum, Solana, Optimism, Arbitrum, Polygon, Uniswap, Aave, and Chainlink as promising investments.

The analysts expect these alternative cryptocurrencies (altcoins) to potentially outperform Bitcoin over the next year, particularly if regulatory conditions continue to improve. This prediction suggests a maturing market where various blockchain platforms could see increased adoption and value.

Bitcoin’s rise in the global asset rankings puts it in elite company. After recently surpassing Meta (formerly Facebook) in market capitalization, Bitcoin’s latest milestone of overtaking silver demonstrates its growing prominence in the traditional financial world.

The current market capitalization figures show Bitcoin at $1.76 trillion, compared to silver’s $1.71 trillion. This positioning sets up Bitcoin’s next potential milestone: surpassing Saudi Aramco, which would mark another historic achievement in the cryptocurrency’s evolution.

The rally comes during a period of increased institutional interest in cryptocurrencies. Major financial institutions have been expanding their crypto offerings, responding to growing demand from both retail and institutional investors.

Market data indicates strong buying pressure across various trading platforms, with both spot and derivatives markets showing increased activity. Trading volumes have risen substantially across major exchanges, suggesting broad participation in the current rally.

Technical indicators and on-chain metrics support the bullish sentiment, with several measures showing strong holder conviction and reduced selling pressure. The number of long-term holders continues to grow, while short-term speculation appears to be decreasing.

The current price levels represent a remarkable recovery from the market downturn of previous years, demonstrating Bitcoin’s resilience and growing mainstream acceptance. The cryptocurrency has now established new support levels well above previous resistance points.

Recent trading patterns show decreased volatility compared to previous bull markets, suggesting a more mature market structure. This stability could attract more conservative investors who previously viewed cryptocurrencies as too volatile for their portfolios.