- The cryptocurrency market has been on a remarkable journey this year with Bitcoin hitting new highs.
- Even though Bitcoin has seen some setbacks recently, analysts maintain an optimistic long-term outlook for the cryptocurrency.
- Bernstein has revised its Bitcoin price targets, expecting the digital asset to reach between $150,000 and $200,000 by the end of 2025.
Explore the latest insights and projections on Bitcoin’s future as analysts raise price targets based on mounting institutional interest and ETF influence.
Bernstein Raises Bitcoin Price Target: Here’s Why
According to CoinOtag, the approval of spot Bitcoin ETFs by the SEC has been a significant driver behind Bitcoin’s recent surge. Although there’s been some pullback, the cryptocurrency continues to exhibit strength. Bernstein analysts foresee potential declines in the short term but maintain a positive outlook for the long run. They’ve adjusted their Bitcoin price target, anticipating it to be between $150,000 and $200,000 by the end of 2025.
Institutional Demand and ETF Influence
In a recent note to clients, Bernstein analysts Gautam Chhugani and Mahika Sapra attributed this optimistic target to unprecedented demand expected through spot Bitcoin ETFs managed by renowned asset managers like BlackRock, Fidelity, and Franklin Templeton. They project a significant increase in assets under management, from today’s $60 billion to about $190 billion. According to the analysts:
We believe U.S.-regulated ETFs represent a pivotal moment for cryptocurrencies, bringing structural demand from traditional capital pools. Approximately $15 billion in net new flows could be driven by these ETFs. We expect Bitcoin ETFs to account for about 7% of circulating Bitcoin by 2025 and around 15% by 2033.
Bitcoin Entering a New Bull Cycle
One key factor highlighted by the analysts is the constrained supply of Bitcoin. Following the halving event in April, mining rewards were slashed from 6.25 BTC to 3.125 BTC, supporting their bullish view. This reduction translates into new Bitcoin supply halving from 900 BTC daily to around 450 BTC. The analysts concluded:
We believe Bitcoin is entering a new bull cycle. The ‘halving’ event reduces natural selling pressure from miners by half, potentially even more as they anticipate future price increases and stockpile more. This unique situation creates new catalysts for demand, leading to exponential price movements.
Bitcoin Price Projection for 2025 and Beyond
Reviewing previous cycles, analysts noted Bitcoin’s substantial rise to nearly five times its marginal production cost in 2017, followed by a dip to 0.8 times the cost in 2018. Similar patterns were observed in later years. For the 2024-27 cycle, Chhugani and Sapra anticipate Bitcoin rising to about 1.5 times its marginal production cost, implying a high of $200,000 by mid-2025, significantly appreciating from today’s price.
For the 2024-27 cycle, we expect Bitcoin to reach 1.5 times its marginal production cost, which translates to a peak of $200,000 by mid-2025.
Bernstein’s forecast for Bitcoin extends even further, projecting the cryptocurrency could hit $500,000 by the end of 2029 and potentially reach an astonishing $1 million by 2033.
Conclusion
Bitcoin’s path forward looks promising, with substantial institutional interest and structural demand via ETFs playing crucial roles. Bernstein’s revised price targets underscore the potential for significant appreciation. Investors and enthusiasts should watch developments closely as Bitcoin continues to navigate its complex, evolving market landscape.
