Top Wall Street firm Bernstein has made a bold prediction: Bitcoin (BTC) could soar to a staggering $1 million by 2033, with a price target of $200K by the end of 2025.
In a recent report, Bernstein initiated coverage of Microstrategy Inc (NASDAQ:MSTR), the largest corporate holder of Bitcoin, which recently acquired an additional 11,931 BTC for nearly $800 million. They also revised their BTC price target upward from $150,000 to $200,000.
MicroStrategy has acquired an additional 11,931 BTC for ~$786.0M using proceeds from convertible notes & excess cash for ~$65,883 per #bitcoin. As of 6/20/24, $MSTR hodls 226,331 $BTC acquired for ~$8.33B at average price of $36,798 per bitcoin.https://t.co/jE9dGqqnON
— Michael Saylor⚡️ (@saylor) June 20, 2024
The reason for this optimistic forecast? Unprecedented demand for spot Bitcoin exchange-traded funds (ETFs). BlackRock’s iShares Bitcoin Trust (IBIT) has amassed over $20 billion in total assets, becoming the world’s largest Bitcoin fund.
As demand for Bitcoin ETFs continues to surge, Bernstein analysts believe that Bitcoin’s price will experience significant growth in the coming years.
With the potential for Bitcoin to reach new heights, it’s no wonder that analysts, experts, and investors alike are keeping a close eye on this leading cryptocurrency.
As institutional demand increases and Bitcoin’s supply decreases, the stage is set for a potential bull cycle that could drive Bitcoin’s price to impressive new levels.
In a note to clients, Bernstein analysts stated that they consider spot Bitcoin ETFs to be “the watershed moment for crypto, attracting structural demand from traditional pools of capital.”
They also noted that approximately “$15 billion of net new flows” have been generated by these ETFs combined and that they anticipate Bitcoin ETFs will account for about “7% of Bitcoin in circulation by 2025” and approximately “15% of the Bitcoin supply by 2033.”
Another factor contributing to Bernstein’s bullish price prediction is the Bitcoin halving event that occurred in April. This event saw the amount of new BTC entering the market cut in half, potentially magnifying the effects of increasing demand.
The analysts explained that the halving also reduced the “natural Bitcoin sell-pressure from miners” by half, while “new catalysts for Bitcoin demand arise, leading to exponential price moves.”
With these factors in play, the stage is set for Bitcoin to experience significant growth in the coming years. The combination of reduced supply and growing demand, particularly from institutional investors, could drive Bitcoin’s price to impressive new heights, potentially reaching the lofty targets set by Bernstein analysts.
Beyond the initial upswing, Bernstein’s analysts present a more conservative long-term outlook, estimating that Bitcoin’s price – last trading just above the $65K level – could reach $500K by the end of 2029 and potentially climb to $1 million by 2033.
As the world of cryptocurrency continues to evolve, Bitcoin’s role as a leading digital asset is only expected to grow. With predictions of a $200K price target by 2025 and even a $1 million target by 2033, it’s clear that experts believe in the long-term potential of this groundbreaking cryptocurrency.
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