Bitcoin, the leading cryptocurrency, has been a subject of great interest and speculation among investors. Despite recent struggles to stay above the all-time high of $73,000, Bernstein, a well-known brokerage firm, remains bullish on the future trajectory of Bitcoin. In a recent report, analysts at Bernstein revised their long-term price forecast for BTC to $200,000 by the end of 2025, up from their previous prediction of $150,000 for the same year. This optimistic outlook is primarily based on the expected growth of approved and regulated spot Bitcoin ETFs.
Bernstein analysts anticipate that major asset managers like BlackRock, Franklin Templeton, and Fidelity will continue to see significant inflows over the next few years. They estimate that these regulated investment vehicles could collectively hold around $190 billion in assets by 2025, a substantial increase from the current figure of $60 billion. The launch of regulated spot Bitcoin ETFs is seen as a crucial event that will attract traditional institutional capital into the cryptocurrency markets. The analysts predict that by the end of 2025, spot Bitcoin ETFs may represent approximately 7% of the total circulating BTC supply.
According to Bernstein’s report, Bitcoin has entered a new bull market cycle triggered by the recent halving event. The analysts believe that the halving reduces the natural selling pressure from miners by half, leading to a potential increase in price. They also expect new catalysts to emerge that will further drive demand for the cryptocurrency. The report states, “We believe bitcoin is in a new bull cycle. The ‘halving’ presents a unique circumstance, where natural bitcoin sell-pressure from miners declines by half, while new catalysts for bitcoin demand arise, leading to exponential price moves.”
Institutional interest in Bitcoin has been on the rise, with significant funds pouring into the digital asset. MicroStrategy, one of the largest institutional holders of Bitcoin, has made headlines for its aggressive accumulation strategy over the past few years. The business intelligence firm, founded by Michael Saylor, currently holds 1.1% of Bitcoin’s total global supply. MicroStrategy recently announced plans to offer $500 million in convertible senior notes due 2032, with the proceeds intended to boost its Bitcoin holdings and for other corporate purposes. Bernstein suggests that if MicroStrategy continues its accumulation of BTC, its holdings could reach 1.5% of Bitcoin’s total circulating supply by the end of 2025.
Bernstein’s optimistic forecast for Bitcoin’s future price trajectory and the expected growth of regulated spot Bitcoin ETFs indicate a positive outlook for the cryptocurrency market. With institutional interest on the rise and key players like MicroStrategy making significant investments, the stage seems set for Bitcoin to potentially reach new highs in the coming years.