- Major Wall Street firm, Bernstein, forecasts Bitcoin ($BTC) reaching $1 million by 2033 and surpassing $200,000 by the end of the next year.
- This is based on their latest report on Nasdaq-listed MicroStrategy, the largest corporate holder of Bitcoin.
- A remarkable demand for spot Bitcoin ETFs is a significant contributing factor to this bullish outlook.
Discover why Bernstein believes Bitcoin could hit $1 million by 2033, with a closer look at the key drivers behind this ambitious forecast.
Bernstein’s Optimistic Bitcoin Price Target
In its recent report, Bernstein revised its Bitcoin price prediction for the end of 2025 from $150,000 to $200,000, citing unparalleled demand for spot Bitcoin ETFs. The report highlights that BlackRock’s iShares Bitcoin Trust (IBIT) has amassed over $20 billion in total assets, making it the world’s largest Bitcoin fund by the end of May this year.
Impact of Bitcoin ETFs
Bernstein’s analysts believe that spot Bitcoin ETFs represent a critical inflection point for cryptocurrency. The introduction of these ETFs has led to considerable structural demand from traditional capital pools. Analysts stated, “Approximately $15 billion of net new flows have been channeled into these ETFs. We anticipate that by 2025, Bitcoin ETFs will account for roughly 7% of Bitcoin’s circulating supply and around 15% by 2033.”
Bitcoin Halving and Market Dynamics
Another key factor influencing Bernstein’s optimistic forecast is the Bitcoin halving event that took place in April. This event effectively reduced the new BTC supply entering the market by half. Analysts emphasized that the halving not only decreased the selling pressure from miners but also introduced new catalysts for Bitcoin demand, potentially prompting exponential price movements.
Historical Performance and Future Projections
Bernstein’s report suggests a pattern in Bitcoin’s historical performance where the cryptocurrency surged to approximately five times its marginal cost of production before a significant drop. This pattern was observed in both 2017 and 2021. Drawing from this historical context, analysts forecast that Bitcoin will rally to 1.5 times its marginal cost of production, indicating a price of $200,000 by mid-2025.
Long-term Bitcoin Price Outlook
While Bernstein’s short-term outlook is bullish, their long-term projections are equally ambitious. Analysts foresee Bitcoin reaching $500,000 by the end of 2029 and ultimately hitting the $1 million mark by 2033. These estimates underscore a sustained belief in Bitcoin’s long-term growth potential amidst evolving market dynamics and increasing institutional adoption.
Conclusion
In summary, Bernstein’s revised Bitcoin price targets reflect significant confidence in the cryptocurrency’s future, driven by institutional demand, pivotal market events like the halving, and the unprecedented rise of spot Bitcoin ETFs. Investors and market observers should keep a close eye on these developments as they could shape the future trajectory of Bitcoin.
