Bernstein analysts have made bold predictions about the future of Bitcoin (BTC), forecasting that its price could reach $200,000 by 2025 and soar to $1 million by 2033. These projections come amidst significant developments in the cryptocurrency market, including the approval and subsequent high inflows into spot Bitcoin exchange-traded funds (ETFs) starting from January 2024.
The analysts, Gautam Chhugani and Mahika Sapra, outlined their bullish stance in a note to clients, highlighting the transformative impact of Bitcoin ETFs on market dynamics. They anticipate that spot BTC ETFs could account for approximately 7% of Bitcoin’s total circulating supply by the end of 2025, driven by anticipated approvals at major financial institutions’ platforms in the third and fourth quarters of this year.
Currently, most of the flows into spot Bitcoin ETFs originate from self-directed retail investors through brokerage platforms, while institutional integrations with wirehouses are still in nascent stages. The analysts posit that Bitcoin ETFs have already attracted about $15 billion in net new flows, underscoring growing investor interest and adoption.
Moreover, Bernstein’s analysis suggests that by 2033, Bitcoin ETFs could represent around 15% of the total Bitcoin supply, reflecting a significant shift in institutional participation and investor confidence in the cryptocurrency.
The market sentiment, as measured by the Bitcoin Fear and Greed Index, currently stands at 60, indicating a phase of market “Greed.” This sentiment aligns with Bernstein’s view of Bitcoin entering a new bull market cycle, catalyzed in part by recent events such as the BTC halving event and anticipated catalysts driving demand for the asset.
In parallel, MicroStrategy continues to play a pivotal role in the Bitcoin ecosystem, recently acquiring an additional 11,931 BTC for approximately $786 million. This purchase further solidifies MicroStrategy’s position as the largest corporate holder of Bitcoin, with a total stash of 226,331 BTC, equivalent to about 1.15% of the global Bitcoin supply.
MicroStrategy’s ongoing strategy includes raising $800 million through convertible senior notes, aimed at further expanding its Bitcoin holdings. This commitment underscores broader corporate adoption trends where companies are increasingly viewing Bitcoin as a strategic asset for treasury management and potential long-term value appreciation.
Overall, Bernstein’s bullish outlook on Bitcoin reflects a growing consensus among analysts and investors regarding the cryptocurrency’s future trajectory, fueled by institutional participation, regulatory developments, and evolving market dynamics.
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