The fall in the price of Bitcoin (CRYPTO: BTC) below $95,000 has raised concerns among traders, but Bernstein analysts advise investors to “buy the dip.”
Despite a brief decline to $94,890 late overnight European time, Bitcoin recovered to $97,750, showing resilience amid elevated market volatility.
Bernstein attributes the drop to routine leverage adjustments at the $100,000 mark rather than any fundamental issues.
“Bitcoin’s decline was driven by more mundane things, like traders hitting the leverage pedal at $100,000,” Bernstein analysts stated in a note to Benzinga. “The price range of $95,000-$98,000 remains attractive for investors with a 6-12 month horizon.”
The report emphasized sustained demand for Bitcoin, especially from exchange-traded funds (ETFs) and corporate treasury participants such as MicroStrategy (NASDAQ:MSTR), which now holds over 423,650 Bitcoin, representing over 2% of the total supply.
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“The imbalance between supply and demand is evident,” the analysts added, noting that ETFs and corporate buyers are acquiring Bitcoin faster than it is being produced.
Bernstein also addressed concerns surrounding Google’s recent announcement about its quantum chip, Willow, which has raised fears about Bitcoin encryption vulnerabilities.
However, the company assured that quantum technology is still decades away from posing a practical threat to Bitcoin’s security.
Bernstein reiterated his 12-month $200,000 Bitcoin price target, citing strong institutional demand, miner leverage, and the emergence of convertible debt markets as key drivers.
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