Amidst the fluctuations in the price of Bitcoin, Bernstein, a prominent brokerage firm, has maintained a positive outlook on the future trajectory of the leading cryptocurrency. In a recent report, analysts at Bernstein revised their long-term price forecast for Bitcoin, setting a new target of $200,000 by the end of 2025. This updated prediction surpasses their previous estimate of $150,000 for the same year. The analysts at Bernstein are particularly optimistic about the growth of the approved and regulated spot Bitcoin ETFs, anticipating significant inflows from major asset managers such as BlackRock, Franklin Templeton, and Fidelity in the coming years.
Bernstein’s report highlights the potential impact of regulated investment vehicles, projecting that these entities could collectively hold approximately $190 billion in assets by 2025, a substantial increase from the current figure of $60 billion. The analysts believe that the introduction of spot Bitcoin ETFs will attract traditional institutional capital into the cryptocurrency markets, with the ETFs potentially representing around 7% of the total circulating supply of Bitcoin by the end of 2025.
According to Bernstein, Bitcoin has entered a new bull market cycle, driven in part by the recent halving event. The analysts anticipate that new catalysts will emerge to further stimulate demand for the digital asset. They expect Bitcoin to reach a price of $200,000 by 2025, with long-term projections indicating a potential surge to $1 million by 2033. Additionally, the ETFs designed to track Bitcoin are forecasted to make up nearly 15% of the total supply by the same year.
The year 2021 has witnessed a significant influx of institutional funds into Bitcoin, with companies like MicroStrategy leading the way. MicroStrategy, known for its aggressive accumulation strategy, has amassed a substantial amount of Bitcoin over the past four years, becoming one of the largest institutional holders of the cryptocurrency. The business intelligence firm, headed by CEO Michael Saylor, currently holds approximately 1.1% of Bitcoin’s total global supply.
In a bold move, MicroStrategy announced its intention to offer $500 million in convertible senior notes due 2032, with the proceeds earmarked for further increasing its Bitcoin holdings, in addition to other corporate purposes. If MicroStrategy continues on its path of accumulating Bitcoin over the next few years, Bernstein predicts that the firm’s holdings could potentially represent 1.5% of Bitcoin’s total circulating supply by the end of 2025.
Bernstein’s optimistic outlook on Bitcoin’s future performance is underpinned by factors such as the growth of regulated investment vehicles, the onset of a new bull market cycle, and increased institutional interest in the cryptocurrency. While price predictions in the realm of cryptocurrency are inherently speculative, Bernstein’s analysis provides valuable insights into the potential growth and evolution of the digital asset in the years to come.
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