As a researcher with a background in financial markets and cryptocurrencies, I find Bernstein’s latest report on Bitcoin’s future trajectory both intriguing and compelling. The firm’s renewed bullish outlook and increased long-term price forecast for BTC are based on their expectations around the growth of approved and regulated spot Bitcoin ETFs.
Despite Bitcoin‘s difficulty in regaining its previous peak price of more than $73,000, renowned financial institution Bernstein remains hopeful regarding Bitcoin’s future trend.
As a Bernstein analyst, I recently revised our long-term price projection for Bitcoin. Previously, we anticipated it reaching $150,000 by the end of 2025. However, after reevaluating market trends and other relevant factors, I’ve upped this forecast to an estimated price of $200,000 for that same time frame.
Bernstein’s Bold Predictions for Bitcoin
Analysts largely credit the resurgence of bullish sentiment towards Bitcoin to their beliefs about the expansion of approved and regulated Bitcoin Exchange-Traded Funds (ETFs). They foresee significant investments from large financial institutions like BlackRock, Franklin Templeton, and Fidelity continuing to pour in over the upcoming years.
Bernstein projected that the total assets managed by these regulated investment vehicles could reach approximately $190 billion by 2025, representing a significant increase from their current holdings of around $60 billion. These analysts consider the introduction of these funds to be a pivotal moment, as it is expected to attract substantial traditional institutional investments into the crypto market.
By the end of 2025, it is anticipated that spot Bitcoin Exchange-Traded Funds (ETFs) could account for approximately 7% of the entire Bitcoin circulation.
According to Bernstein’s report, Bitcoin has initiated a fresh bull market due to the recent halving event. Moreover, industry experts anticipate additional factors that could boost the cryptocurrency’s appeal and demand.
“Based on our analysis, we think the price of Bitcoin is entering a new bull market phase. The ‘halving’ event, which occurs approximately every four years, significantly reduces the amount of Bitcoin mined and sold onto the market by half. Moreover, fresh drivers for Bitcoin demand are emerging, potentially triggering substantial price increases.”
By 2025, Bernstein predicted that Bitcoin’s price would reach an all-time high of $200,000. Looking further ahead, he believed that Bitcoin could potentially reach a value of $1 million by 2033. Additionally, he estimated that Bitcoin ETFs representing approximately 15% of the total supply would exist by this same year.
Bernstein on MicroStrategy’s Bitcoin Strategy
In 2021, institutional investment in bitcoin has surged noticeably. Among the biggest institutional investors in this digital currency is MicroStrategy. Over the last four years, MicroStrategy’s bold buying approach has enabled them to amass substantial holdings of bitcoin, thereby establishing the software company as a significant player in the cryptocurrency market.
Michael Saylor’s business intelligence company currently owns approximately 1.1% of the entire bitcoin supply in existence. Notably, MicroStrategy intends to issue $500 million worth of convertible senior notes due in 2032. The funds raised will be allocated towards increasing its Bitcoin holdings and for other corporate objectives.
Based on current trends, Bernstein forecasts that the company’s Bitcoins could make up approximately 1.5% of the overall Bitcoin supply by the end of 2025.
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2024-06-15 14:48