Despite Bitcoin’s recent struggles to stay above $73,000, brokerage firm Bernstein has maintained a positive outlook on the cryptocurrency’s future. In their latest report, analysts at Bernstein have increased 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 upward revision is largely based on the anticipated growth of approved and regulated spot Bitcoin ETFs.
Bernstein analysts are banking on major asset managers such as BlackRock, Franklin Templeton, and Fidelity to attract significant inflows over the next few years. They estimate that by 2025, these regulated investment vehicles could collectively hold around $190 billion in assets, a substantial increase from the current $60 billion figure. The launch of these funds is expected to bring traditional institutional capital into the crypto markets, potentially representing around 7% of the total circulating BTC supply by the end of 2025.
The report from Bernstein also suggests that bitcoin has entered a new bull market cycle following the recent halving event. Analysts believe that the halving event reduces sell-pressure from miners by half, while new catalysts for bitcoin demand emerge, leading to exponential price increases. They foresee new catalysts driving demand for the asset in the coming years, paving the way for significant price movements.
In 2021, Bitcoin has witnessed a surge in institutional investments, with companies like MicroStrategy leading the way. MicroStrategy, under the leadership of Michael Saylor, has aggressively accumulated bitcoin over the past four years, transforming the software firm into a major holder of the cryptocurrency. The company currently holds an impressive 1.1% of bitcoin’s total global supply. MicroStrategy’s recent announcement of offering $500 million in convertible senior notes due 2032 to further bolster its Bitcoin holdings reflects its continued bullish stance on the digital asset.
Looking ahead, Bernstein predicts that bitcoin could reach $1 million by 2033, with ETFs tracking the cryptocurrency representing almost 15% of the total supply by that year. They also forecast that MicroStrategy’s holdings could grow to represent 1.5% of bitcoin’s total circulating supply by the end of 2025. This growth trajectory indicates a continued appetite for bitcoin among institutional investors and a positive outlook for the cryptocurrency market as a whole.
Bernstein’s optimistic projections for Bitcoin’s future paint a bullish picture for the digital asset. With the anticipated growth of regulated spot Bitcoin ETFs and increasing institutional adoption, the path to $200,000 by 2025 seems plausible. The evolving market dynamics and the emergence of new catalysts are expected to drive demand for bitcoin, leading to significant price movements in the coming years. As companies like MicroStrategy continue to accumulate bitcoin and show confidence in its long-term potential, the stage is set for further growth and mainstream acceptance of cryptocurrency in the financial landscape.
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