July 24, 2024
Bernstein Predicts Bitcoin at $200K by 2025, $1M by 2033
Bitcoin News

Bernstein Predicts Bitcoin at $200K by 2025, $1M by 2033

Analysts at the research and brokerage firm Bernstein have revised their Bitcoin price prediction upward, now forecasting that Bitcoin Price could reach nearly $200,000 by the end of next year. This optimistic projection follows robust inflows into spot U.S. Bitcoin exchange-traded funds (ETFs) since their approval in January, representing an increase from their previous target of $150,000.

Impact of Bitcoin ETFs and Institutional Adoption

The analysts’ prediction assumes that spot Bitcoin ETFs will account for around 7% of the total circulating Bitcoin supply by the end of 2025. “We see Bitcoin ETFs as on the cusp of approvals at major wirehouses/large private bank platforms in Q3/Q4,” wrote Bernstein analysts Gautam Chhugani and Mahika Sapra in a note to clients.

“The institutional basis trade looks like the ‘Trojan Horse’ for adoption, and these investors are in the process of evaluating ‘net long’ positions.”

Currently, nearly 80% of the spot Bitcoin ETF flows come from self-directed retail investors through broker platforms, with institutional integrations with wirehouses still in the early stages. “Around $15 billion of net new flows have been brought in by the ETFs combined,” the analysts noted. They project that Bitcoin ETFs will represent approximately 7% of Bitcoin in circulation by 2025 and about 15% of the Bitcoin supply by 2033.

“We expect spot Bitcoin ETFs to touch ~$190B AuM by ‘25E market peak and $3Tn by 2033.”

Spot Bitcoin ETF projections. Source: Bernstein

Bull Market Cycle and Institutional Investments

Bernstein analysts also suggest that Bitcoin has entered a new bull market cycle, fueled by the recent Bitcoin halving event, and anticipate new catalysts to drive demand for the asset. Beyond capital flows into spot Bitcoin ETFs, Bitcoin has seen significant institutional investments.

“We believe Bitcoin is in a new bull cycle. The ‘halving’ presents a unique circumstance, where natural Bitcoin sell-pressure from miners declines by half (or even more, as they inventory more in anticipation), while new catalysts for Bitcoin demand arise, leading to exponential price moves.”

MicroStrategy, the largest corporate holder of Bitcoin, continues its aggressive accumulation strategy, recently acquiring an additional 11,931 BTC for approximately $786.0 million, according to founder and former CEO Michael Saylor. The business intelligence firm now holds 226,331 BTC, which equates to about 1.15% of Bitcoin’s total global supply.

Source: Michael Saylor

Earlier, MicroStrategy announced its plans to offer $800 million in aggregate principal amount of convertible senior notes due 2032, with the proceeds intended to further bolster its Bitcoin holdings. If this accumulation strategy persists over the next few years, Bernstein predicts that the company’s holdings could grow to represent 1.5% of Bitcoin’s total circulating supply by the end of 2025.

Image by WorldSpectrum from Pixabay

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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