Bernstein: Bitcoin Finds Support in $90,000 Range Due to Strong Institutional Demand

On February 3rd, analysts from Research and brokerage firm Bernstein released a report stating, "If the imposition of tariffs leads to a stronger dollar, rising inflation, and a reduced expectation of short-term interest rate hikes, it means a reduction in the global liquidity of risk assets." They said: "In the long run, as governments take on higher debts and fiscal deficits, resulting in currency devaluation, Bitcoin will maintain its relative value advantage against the dollar, as evidenced by Bitcoin's long-term compounded growth history. However, in the short term, Bitcoin is correlated with risk assets, so the selling of Bitcoin is not unexpected." However, the Bernstein analyst team led by Gautam Chhugani stated that Bitcoin, after absorbing this initial risk shock, according to its fundamentals, the recent selling has always been supported within the $90,000 range, benefiting from strong institutional demand. They believe that as the US moves towards including Bitcoin in national reserves, ETF and corporate fund inflows will remain strong. Chhugani stated that the repeal of SAB 121 could drive bank-supported Bitcoin custody, trading, and prime brokerage services. Bernstein analysts believe that in the long term, the Trump administration views cryptocurrency as a strategic tool for governance and national finance. The aim is to control inflation by cutting the deficit, reducing costs through the Elon Musk-led government efficiency sector, and increasing energy production. Bernstein expects that governments will hold reserves of gold and Bitcoin as economic buffers, with the US leading a pro-cryptocurrency shift in more countries. Bernstein expects Bitcoin to reach a price target of $200,000 by the end of 2025. (The Block)