Bernstein, a renowned asset management firm managing over $750 billion in assets, has significantly raised its Bitcoin price forecast. The firm now predicts that Bitcoin will reach $200,000 by 2025, up from their previous estimate of $150,000. Looking further ahead, Bernstein projects an astonishing $1 million per Bitcoin by 2033. This bullish outlook was shared by analysts Gautam Chhugani and Mahika Sapra in a note to clients released on Friday.
The analysts attribute their optimism to the anticipated surge in spot Bitcoin ETFs, which they see as a major catalyst for the cryptocurrency’s growth. According to Chhugani and Sapra, the introduction of U.S. regulated ETFs has marked a pivotal moment for the crypto market, drawing significant interest from traditional investors. Since their debut in January, these spot Bitcoin ETFs have seen net inflows exceeding $15 billion. The analysts believe that by 2025, these ETFs could represent about 7% of Bitcoin’s circulating supply.
Bullish Factors and Future Predictions
Bernstein’s analysts also pointed to Bitcoin’s current bull cycle and the recent block reward halving, which reduced the daily issuance of new Bitcoins from 900 to 450. They argue that this reduction in supply, combined with increasing demand, could push Bitcoin prices to over $200,000 by late next year. Looking even further ahead, they predict that by 2033, spot Bitcoin ETFs could account for roughly 15% of the cryptocurrency’s circulating supply. This increased demand, coupled with limited supply, could propel Bitcoin prices to over $1 million.
In their detailed analysis, Chhugani and Sapra forecast Bitcoin reaching $500,000 by the end of 2029 and surpassing $1 million by 2033. This projection underscores their confidence in the long-term potential of Bitcoin as a digital asset.
MicroStrategy’s Strategic Moves
In addition to their Bitcoin forecast, Bernstein has initiated coverage on MicroStrategy, a company known for its substantial Bitcoin holdings. The firm has assigned an “outperform” rating to MicroStrategy’s stock, with a price target of $2,890 by the end of 2025. MicroStrategy, an AI-powered cloud analytics firm, currently holds 214,400 Bitcoins and has recently announced a $700 million convertible notes sale to finance further Bitcoin acquisitions.
Bernstein’s revised Bitcoin price predictions and their positive outlook on MicroStrategy reflect a strong belief in the continued growth and adoption of Bitcoin. The firm’s analysis highlights the significant impact that institutional investment and reduced Bitcoin supply can have on driving up the cryptocurrency’s value in the coming years.