The pullback in Bitcoin's (CRYPTO: BTC) price sub $95,000 levels has raised concerns among traders, but Bernstein analysts advise investors to "buy the dip."
Despite a brief decline to $94,890 late last night European time, Bitcoin recovered to $97,750, showing resilience amid heightened market volatility.
Bernstein attributes the dip to routine leverage adjustments at the $100,000 mark rather than any fundamental issues.
"Bitcoin's dip was driven by more mundane things, like traders pressing the leverage pedal at $100,000," Bernstein analysts stated in a note to Benzinga. "The $95,000-$98,000 price range remains attractive for investors with a 6-12 month horizon."
The report emphasized Bitcoin's sustained demand, particularly from exchange-traded funds (ETFs) and corporate treasury participants like MicroStrategy (NASDAQ:MSTR), which now owns over 423,650 Bitcoin, representing more than 2% of the total supply.
Also Read: El Salvador Relaxes Bitcoin Rules To Seal $1.3 Billion Loan
"The supply-demand imbalance is stark," the analysts added, highlighting that ETFs and corporate buyers are acquiring Bitcoin faster than it is being produced.
Bernstein also addressed concerns surrounding Google's recent announcement of its quantum chip, Willow, which has sparked fears about Bitcoin's encryption vulnerabilities.
However, the firm assured that quantum technology remains decades away from posing a practical threat to Bitcoin's security.
Bernstein reiterated its 12-month Bitcoin price target of $200,000, citing robust institutional demand, manageable miner leverage, and the emergence of convertible debt markets as key drivers.
- Bitcoin Saw 'Historic Rally' In November Thanks To Trump Win, Says JPMorgan
Image created using artificial intelligence with Midjourney.
