Bitcoin has been on a rollercoaster ride in terms of its price action, struggling to break past the all-time high of $73,000. Despite this, renowned brokerage firm Bernstein has maintained its optimism about the future trajectory of the digital asset. In their latest report, analysts at Bernstein have revised their long-term price forecast for Bitcoin to $200,000 by the end of 2025, up from their previous prediction of $150,000 for that year. This upward revision is primarily attributed to the expected growth of approved and regulated spot Bitcoin ETFs.
The analysts at Bernstein foresee major asset managers like BlackRock, Franklin Templeton, and Fidelity experiencing significant inflows over the next few years, leading to collective assets under management of around $190 billion by 2025. This represents a substantial increase from the current figure of approximately $60 billion. The launch of these regulated investment vehicles is viewed as a pivotal event that will attract traditional institutional capital into the cryptocurrency markets. It is further predicted that spot Bitcoin ETFs could comprise 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 driven by the recent halving event. The analysts believe that the halving reduces the sell-pressure from miners by half, while new catalysts for demand for the digital asset emerge, leading to exponential price movements. This combination of factors is expected to propel Bitcoin’s price to $200,000 by 2025 and potentially to $1 million by 2033.
In recent years, Bitcoin has witnessed a significant influx of institutional funds, with companies like MicroStrategy leading the way. MicroStrategy, under the leadership of CEO Michael Saylor, has adopted an aggressive accumulation strategy that has transformed the software firm into a major holder of Bitcoin. The company currently holds 1.1% of Bitcoin’s total global supply and has announced plans to offer convertible senior notes to raise funds for further Bitcoin acquisitions. Bernstein anticipates that by 2025, MicroStrategy’s holdings could represent 1.5% of Bitcoin’s total circulating supply.
The outlook for Bitcoin remains bullish, with Bernstein analysts predicting significant price appreciation fueled by the growth of regulated spot Bitcoin ETFs and institutional adoption. The digital asset’s trajectory is closely tied to market dynamics, halving events, and emerging catalysts for demand. As Bitcoin continues to gain mainstream acceptance, its potential to reach new price milestones and become a significant player in the global financial landscape becomes increasingly apparent.
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