As the countdown to Bitcoin's halving event draws near, analysts at research and brokerage firm Bernstein express optimism about the cryptocurrency's future trajectory. Reiterating their target of $150,000 by the end of 2025, Gautam Chhugani and Mahika Sapra, in a note to clients, anticipate Bitcoin to resume its bullish momentum post-halving.

The analysts underscore the significance of the halving event, highlighting its historical correlation with substantial price fluctuations in the cryptocurrency market. While the halving itself doesn't inherently drive Bitcoin price appreciation, Chhugani and Sapra emphasize the role of new demand catalysts in fueling price growth. They point out that reduced sell pressure from miners, resulting from the halving, is now a less significant factor given Bitcoin's maturing market dynamics.

However, the analysts note that demand catalysts, such as corporate purchases and institutional adoption, have historically synchronized with supply reductions following halving events. In the current cycle, they attribute the strong price appreciation pre-halving to ETF approvals in January, which led to significant inflows and propelled Bitcoin to new highs. Despite recent corrections in the market, Bernstein remains optimistic about Bitcoin's long-term prospects, particularly as structural ETF demand continues to drive momentum.

While negative headlines have cast doubts on miner revenue impact, Bernstein predicts a moderate reduction in network hash rate post-halving. Less efficient mining operations may become unprofitable, leading to consolidation within the industry. Nonetheless, the analysts believe that top public miners could outperform Bitcoin over the next 12 months, buoyed by increased market share and robust revenues.

With Bitcoin's halving event approaching in less than three days, the cryptocurrency ecosystem is poised for a significant milestone. As miners prepare for reduced rewards, market participants are closely monitoring developments to gauge the potential impact on price dynamics. Amidst the anticipation surrounding the halving, Bernstein's bullish outlook underscores the enduring resilience of Bitcoin in the face of market uncertainties.