Bitcoin has faced challenges in surpassing the recent all-time high of $73,000, but Bernstein, a prominent brokerage firm, remains positive about the future trajectory of the asset. In a recent report, Bernstein analysts revised their long-term price forecast for BTC to $200,000 by the end of 2025, up from their previous prediction of $150,000 for the same year. This upgrade is primarily driven by their expectations regarding the growth of approved and regulated spot Bitcoin ETFs. These analysts anticipate significant inflows from major asset managers such as BlackRock, Franklin Templeton, and Fidelity in the coming years. Bernstein estimates that by 2025, regulated investment vehicles could collectively hold about $190 billion in assets, a substantial increase from the current $60 billion. The launch of these funds is expected to attract traditional institutional capital into the crypto markets, with spot Bitcoin ETFs potentially representing around 7% of the total circulating BTC supply by the end of 2025.
According to Bernstein’s report, bitcoin has entered a new bull market cycle triggered by the recent halving event. The analysts foresee additional catalysts emerging that will further drive demand for the asset. They stated, “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, while new catalysts for bitcoin demand arise, leading to exponential price moves.” The firm predicts that after reaching $200,000 by 2025, BTC could potentially reach $1 million by 2033. Additionally, ETFs designed to track the cryptocurrency may represent nearly 15% of the total supply by the same year.
Institutional interest in bitcoin has been on the rise, with significant funds flowing into the asset this year. MicroStrategy, one of the largest institutional holders of bitcoin, has been actively accumulating the cryptocurrency over the past four years. The software firm, led by Michael Saylor, now holds a substantial 1.1% of bitcoin’s total global supply. MicroStrategy recently announced its intention to offer $500 million in convertible senior notes due 2032, with the proceeds earmarked for increasing its Bitcoin holdings and other corporate purposes. Bernstein speculates that if MicroStrategy continues its accumulation strategy, the company’s holdings could grow to represent 1.5% of bitcoin’s total circulating supply by the end of 2025.
Overall, Bernstein’s optimistic outlook on the future of bitcoin is fueled by the anticipated growth of regulated spot Bitcoin ETFs and the influx of institutional investments into the cryptocurrency. The firm’s revised long-term price forecast of $200,000 by 2025 signals a positive sentiment towards BTC’s potential price appreciation. As the market continues to evolve and new catalysts emerge, the landscape for bitcoin and digital assets as a whole may experience significant transformations in the years to come. Investors and industry participants are closely monitoring these developments, eager to capitalize on the opportunities presented by the evolving crypto market.