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n a recent note issued on March 21st, Bernstein analysts Gautam Chhugani and Mahika Sapra made the case that Bitcoin mining companies are well positioned to capitalize on the bullish conditions over the coming year. While previously forecasting a 15% reduction in global hash rate after the upcoming April halving, the pair now expect just a 7% drop as miners prove more resilient. This would allow for healthier network security alongside robust revenue streams for major players like CleanSpark, Riot Blockchain and Marathon Digital.

Institutional Adoption Continues Apace 

Another bullish development cited was the steady influx of institutional capital entering the Bitcoin market via investment vehicles like ETFs. Bernstein predicts "aggressive ETF inflows" will serve as a key price support. Just since the start of 2024, Purpose Investments' Bitcoin ETF and Fidelity's Wise Origin Bitcoin ETF both launched in Canada to strong demand. Wider access continues to push Bitcoin towards its goal of becoming a fully investable asset class for accredited and non-accredited investors alike.

Halving Tailwinds on the Horizon

While the halving is still a month away, Bernstein analysts see it as another shot in the arm for bitcoin prices heading into year-end. By reducing mining rewards from 6.25 to 3.125 BTC per block, the event is widely anticipated to tighten Bitcoin's supply and underpin further price appreciation. The analysts downwardly revised their hash rate reduction forecast, indicating the industry is better prepared to weather short-term difficulties after the Tokeneconomics adjustment. With major publicly traded miners like Marathon already running at max capacity, the scene is set for a very profitable latter half of 2024. 

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