Bitcoin may have struggled to reclaim its position above the recently established all-time high of over $73,000, but prominent brokerage firm Bernstein remains optimistic about the asset’s future trajectory.
In its latest report, Bernstein analysts even upped their long-term price forecast for BTC to $200,000 by the end of 2025. The firm had previously predicted the cryptocurrency to hit $150,000 that year.
Bernstein’s Bold Predictions for Bitcoin
The analysts attributed this renewed bullish outlook primarily to their expectations around the growth of the approved and regulated spot Bitcoin ETFs. They essentially anticipate major asset managers such as BlackRock, Franklin Templeton, and Fidelity to continue seeing massive inflows over the next few years.
Bernstein further estimated that these regulated investment vehicles could collectively hold around $190 billion in assets by 2025, up from the current figure of around $60 billion. These analysts view the launch of the funds as a crucial event that will fuel traditional institutional capital into the crypto markets.
They further predicted that spot Bitcoin ETFs may represent around 7% of the total circulating BTC supply by the conclusion 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’ 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.”
After hitting a cycle-high of $200,000 by 2025, Bernstein said that BTC is likely to tap $1 million by 2033 while the ETFs designed to track the cryptocurrency will be equivalent to almost 15% of the total supply by the same year.
Bernstein on MicroStrategy’s Bitcoin Strategy
This year, bitcoin has seen significant institutional funds pouring in. 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 firm into a major holder of the cryptocurrency.
The Michael Saylor-founded business intelligence firm now holds a whopping 1.1% of bitcoin’s total global supply. Interestingly, MicroStrategy announced its plans to offer $500 million aggregate principal amount of convertible senior notes due 2032, the proceeds of which will be used to boost its Bitcoin holdings as well as for other corporate purposes.
If it continues to accumulate BTC 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 2025-end.
