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Bitcoin could reach $200,000 by 2025!

Sun 16 Jun 2024 ▪ 4 min of reading ▪ by Luc Jose A.
Getting informed Trading

Bitcoin is attracting growing interest among analysts, experts, and investors. Bernstein analysts, particularly confident in this leading cryptocurrency, predict an explosion in its price by next year. These optimistic forecasts are based on recent events that have deeply impacted the crypto industry. Between increased demand and limited supply, bitcoin might well be on the brink of a new bullish cycle.

Le bitcoin pourrait atteindre 200k d'ici

Bernstein Analysts See Big Things for Bitcoin

Bernstein analysts have recently revised their prediction for the price of bitcoin, increasing their target from $150,000 to $200,000 by the end of 2025. This revision is primarily driven by two key factors: the increase in bitcoin demand via ETFs and the reduction in the supply of the leading crypto.

On one hand, major global asset managers, including BlackRock, Fidelity, and Franklin Templeton, are behind the increased demand through their Bitcoin ETF funds. Bernstein analysts estimate that these ETFs could manage around $190 billion in assets under management by 2025, up from $60 billion today. “We believe that regulated ETFs in the U.S. have been a decisive moment for crypto, sparking structural demand from traditional capital pools,” wrote analysts Gautam Chhugani and Mahika Sapra.

On the other hand, the latest halving reduced the overall miner subsidy from 6.25 BTC to 3.125 BTC, decreasing the new bitcoin supply from 900 BTC to 450 BTC per day. This reduction in supply, coupled with increasing demand, is seen as a major catalyst for rising bitcoin prices. “We believe that bitcoin is in a new bullish cycle,” stated the analysts, highlighting the decreased selling pressure exerted by miners.

Bernstein Initiates Coverage on MicroStrategy with Outperform Rating

Bernstein analysts have also initiated coverage on MicroStrategy’s stock, forecasting an outperform rating with a price target of $2,890 by the end of 2025. MicroStrategy already holds 214,400 BTC, or about 1.1% of the total circulating supply, valued at over $14 billion. The company continues to acquire additional bitcoins through a $500 million senior convertible note offering.

MicroStrategy’s strategy has outperformed spot bitcoin, with net asset value per share quadrupling compared to a 2.4 times growth for spot bitcoin. “Investors own MSTR to gain active and leveraged exposure to bitcoin stock,” noted the analysts, adding that the scarcity of corporate bitcoin investment vehicles such as MSTR in listed public markets enhances the attractiveness of this strategy.

Bernstein analysts’ forecasts reveal growing optimism for bitcoin, supported by structural factors like increased demand through ETFs and reduced supply. MicroStrategy’s proactive strategy in acquiring bitcoins underscores continued confidence in the cryptocurrency’s growth potential. These developments could have significant implications for investors and the cryptocurrency market as a whole.

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Luc Jose A. avatar
Luc Jose A.

Graduated from Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I committed to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. Every day, I strive to provide an objective analysis of the news, decipher market trends, relay the latest technological innovations, and put the economic and societal issues of this ongoing revolution into perspective.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.