- As Bitcoin hovers below its recent peak of over $73,000, prominent brokerage firm Bernstein remains bullish on its long-term potential.
- The firm’s latest report has increased the projected price of Bitcoin to $200,000 by the end of 2025.
- Notably, Bernstein previously estimated the cryptocurrency would reach $150,000 by the same time.
Bernstein projects Bitcoin to hit $200,000 by 2025, driven by the growth of regulated Bitcoin ETFs and institutional demand.
Bernstein’s Optimistic Bitcoin Forecast
Bernstein analysts have revised their Bitcoin price forecast upwards, attributing their confidence to the anticipated growth of regulated spot Bitcoin ETFs. They foresee influential asset managers, like BlackRock, Franklin Templeton, and Fidelity, attracting substantial investments over the next few years.
The report predicts that these regulated investment products could collectively manage around $190 billion by 2025, a significant increase from the current $60 billion. Analysts see the launch of spot Bitcoin ETFs as a pivotal event, likely to siphon traditional institutional capital into the cryptocurrency market.
Furthermore, they estimate that these funds could constitute around 7% of the total circulating Bitcoin supply by the end of 2025.
Expanding on their bullish outlook, Bernstein analysts suggest that Bitcoin may maintain robust momentum due to the effects of the recent halving event. They anticipate new catalysts, which could substantially boost demand for the cryptocurrency.
“We believe Bitcoin has entered a new bull market cycle. The ‘halving’ reduces natural sell-pressure from miners by half (or more as miners inventory more in anticipation), while new demand drivers emerge, potentially leading to exponential price increases.”
Beyond reaching $200,000 by 2025, Bernstein projects that Bitcoin could rise to $1 million by 2033. They forecast that Bitcoin ETFs will account for almost 15% of the total supply by that time.
Bernstein’s Perspective on MicroStrategy’s Bitcoin Strategy
Bitcoin has seen considerable institutional inflow this year, with MicroStrategy emerging as one of the largest holders. The business intelligence firm, founded by Michael Saylor, has aggressively accumulated Bitcoin over the past four years, now holding about 1.1% of the total global supply.
Recently, MicroStrategy announced plans to offer $500 million in convertible senior notes due 2032 to further increase its Bitcoin holdings and for other corporate purposes. Bernstein analysts predict that if MicroStrategy continues its acquisition strategy, its holdings could represent 1.5% of Bitcoin’s total circulating supply by the end of 2025.
Conclusion
In summary, Bernstein’s optimistic projections highlight the growing institutional interest and potential transformational impact of regulated spot Bitcoin ETFs on the market. As Bitcoin continues to attract significant investments from major asset managers and companies like MicroStrategy, its long-term outlook remains promising. The projected substantial growth in Bitcoin’s value underscores the cryptocurrency’s evolving role within the broader financial ecosystem.
