Markets
Goal increasing to $200,000 by the end of 2025
Bitcoin may have struggled to regain its position above the recently set all-time high of over $73,000, but major brokerage firm Bernstein remains optimistic about the asset’s future trajectory.
In its latest report, Bernstein analysts even raised their long-term price forecast for BTC to $200,000 by the end of 2025. The firm had previously predicted that the cryptocurrency would reach $150,000 that year.
Bernstein’s bold predictions for Bitcoin
Analysts attributed this renewed bullish outlook primarily to their expectations about the growth of approved and regulated Bitcoin spot ETFs. They essentially predict that major asset managers like BlackRock, Franklin Templeton, and Fidelity will continue to see massive inflows over the next few years.
Bernstein also estimated that these regulated investment vehicles could collectively hold about $190 billion in assets by 2025, up from the current figure of about $60 billion. These analysts see the launch of the funds as a crucial event that will fuel traditional institutional capital into the cryptocurrency markets.
They also predicted that spot Bitcoin ETFs could account for around 7% of the total circulating BTC supply by the end of 2025.
Bernstein’s report also states that bitcoin has entered a new bull market cycle driven by the recent halving event. At the same time, analysts expect new catalysts to emerge that will drive demand for the asset.
“We believe Bitcoin is in a new bull cycle. The “halving” represents a unique circumstance, in which the natural selling pressure of bitcoin from miners decreases by half (or even more, as they invent more in anticipation), while new catalysts for bitcoin demand emerge, bringing to exponential price movements.
After reaching a cyclical high of $200,000 by 2025, Bernstein said BTC will likely reach $1 million by 2033, while ETFs designed to track the cryptocurrency will amount to nearly 15% of total supply by the same year .
Bernstein on MicroStrategy’s Bitcoin strategy
This year, bitcoin has seen significant institutional funding flow. One of the largest institutional holders of the asset is MicroStrategy, whose aggressive accumulation strategy over the past four years has managed to transform the software company into one of the largest holders of the cryptocurrency.
The business intelligence firm founded by Michael Saylor now holds a whopping 1.1% of the total global bitcoin supply. Interestingly, MicroStrategy announced its plans to offer an aggregate principal amount of $500 million in convertible senior notes due 2032, the proceeds of which will be used to increase its Bitcoin holdings and for other corporate purposes.
If it continues to accumulate BTC over the next few years, Bernstein predicts the company’s holdings could grow to represent 1.5% of the total circulating supply of bitcoin by the end of 2025.