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Financial Titan Bernstein Predicts Bitcoin at $1 Million, Here’s When
In a analysis According to a statement released Thursday, AllianceBernstein, the leading global investment firm with assets under management worth $725 billion, has significantly increased its price target for Bitcoin, forecasting that the leading cryptocurrency will reach $1 million by 2033. This bullish outlook is underlined by a new wave of adoption via Bitcoin spot exchange in the United States. -traded funds (ETFs) managed by heavyweight asset managers including BlackRock, Fidelity and Franklin Templeton.
Bitcoin’s path to $1 million in 2033
Analysts Gautam Chhugani and Mahika Sapra of Bernstein outline a detailed scenario in which they expect assets under management in Bitcoin-related ETFs to reach around $190 billion by 2025, a substantial jump from 60 billion current dollars. The report states: “We believe that US-regulated ETFs have been a watershed moment for crypto, generating structural demand from traditional capital pools. »
They highlighted the considerable impact of these funds, which have already injected around $15 billion in new net flows on the market.
The report extrapolates that by 2025, Bitcoin ETFs will represent approximately 7% of all Bitcoins in circulation, and by 2033, this figure could reach approximately 15% of the total Bitcoin supply. This significant increase in institutional interest and the investment is poised to play a vital role in the rise in the price of Bitcoin.
A key aspect of Bernstein’s analysis is the effect of Bitcoin’s supply mechanisms, particularly halving events. The most recent halving in April reduced the block reward for miners from 6.25 BTC to 3.125 BTC, thereby halving the new daily supply from 900 BTC to 450 BTC.
According to Chhugani and Sapra, “the reduce by half presents a unique circumstance, where miners’ natural Bitcoin selling pressure drops by half (or even more, as they store more in anticipation), while new catalysts for Bitcoin demand emerge, leading to exponential price movements .
Historically, after halving events, BTC has seen significant price increases. Analysts look to past cycles for context: In 2017, Bitcoin climbed to about five times its marginal cost of production, then bottomed out at 0.8 times the following year. A similar trend was observed during the 2021 cycle.
For the 2024-2027 cycle, they forecast a more conservative but substantial increase, up to 1.5 times the marginal cost of producing Bitcoin, which would result in a projected mid-cycle high of $200,000 by mid-2025. During the next cycle, Bernstein expects the price of Bitcoin to reach half a million US dollars by 2029, before crossing the million dollar mark four years later.
Outlook for MicroStrategy
Along with his Bitcoin outlook, Bernstein also initiated coverage on MicroStrategy with an outperform rating, targeting a price of $2,890 for the stock by the end of 2025. MicroStrategy has been noted for its BTC. acquisition strategynow holding 214,400 BTC, or 1.1% of the cryptocurrency’s circulating supply, valued at approximately $14.5 billion.
MicroStrategy’s aggressive acquisition of Bitcoin, financed by convertible notes (a form of long-term debt that converts into equity under specific conditions) demonstrates a robust investment strategy that analysts say offers “risk of limited liquidation” due to the already profitable nature of their assets. based on today’s Bitcoin prices. They predict that MicroStrategy’s holdings will grow to 1.5% of Bitcoin’s supply by 2025.
At press time, BTC was trading at $66,946.
Featured image created with DALL·E, chart from TradingView.com