Key Points
- Bernstein, a prominent asset management firm, has raised its Bitcoin price prediction for 2025 to $200,000.
- The firm’s analysts project Bitcoin’s price to reach $1 million by 2033.
Bernstein, a renowned asset management firm managing over $750 billion in assets, has revised its Bitcoin price forecast. The firm has upped its 2025 target for Bitcoin from $150,000 to $200,000, and predicts a staggering $1 million value by 2033.
Bitcoin’s Bullish Catalyst
The firm’s analysts released their updated price projection for the leading cryptocurrency last Friday. They attribute the anticipated price surge to an expected increase in spot Bitcoin ETFs, which they view as a positive catalyst.
According to Bernstein analysts Gautam Chhugani and Mahika Sapra, the introduction of U.S regulated ETFs marked a pivotal moment for cryptocurrency. They believe it led to a structural demand from traditional capital sources.
Spot Bitcoin ETFs and BTC Price
Since their launch in early January, spot Bitcoin ETFs have seen net inflows exceeding $15 billion. The analysts predict that the global spot Bitcoin ETF market could account for about 7% of Bitcoin’s circulating supply by 2025.
Bernstein analysts also claim that Bitcoin is currently in a new bull cycle. They cite the recent block reward halving, which reduced daily Bitcoin emission from around 900 to 450, as another contributing factor. They suggest that a surge in demand amidst the ongoing supply shock could push Bitcoin’s price over $200k by the end of next year.
The analysts also foresee spot Bitcoin ETFs accounting for approximately 15% of Bitcoin’s circulating supply by 2033. If this happens, a price rally in relation to the marginal cost of production could propel Bitcoin’s price to over $1 million within the next eight years.
Chhugani and Sapra project Bitcoin’s price to hit $500,000 by the end of 2029 and surpass $1 million by 2033.
In addition to their Bitcoin predictions, Bernstein also began covering MicroStrategy stock. They assigned it an outperform rating 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 recently announced a $700 million convertible notes sale to acquire more Bitcoin.
