Bernstein analysts expect Bitcoin price to hit $200k by 2025 due to BTC ETF influx.
Analysts at research and brokerage firm Bernstein have predicted that Bitcoin (BTC) could reach nearly $200,000 since its approval in January. This projection is an upward revision from their previous target of $150,000.
The analysts based this prediction on the assumption that Bitcoin ETFs could represent 7 percent of the total Bitcoin circulation by the end of 2025.
“We see adoption of Bitcoin ETFs on major wirehouses/large private banking platforms in Q3/Q4,” Bernstein analysts Gautam Chugani and Mahika Sapra said in a note to clients.
“Institutional-based trading appears to be a ‘Trojan horse' for adoption, and these investors are evaluating ‘net long' positions.”
Analysts say that currently 80% of Bitcoin ETF flows in the space come from self-directed retail investors through brokerage platforms, while institutional integration with wirehouses is still in its infancy.
“Approximately $15 billion in net new flows were taken up by ETFs,” the analyst wrote. “We expect the Bitcoin ETF to equal ~7% of Bitcoin in circulation by 2025 and ~15% of the Bitcoin supply by 2033.”
“We expect spot Bitcoin ETFs to touch ~$190B AuM by '25E market peak and $3Tn by 2033.”
Bernstein analysts also suggest that BTC price has entered a new bull market cycle led by the recent Bitcoin halving event. They expect new incentives to be created that will drive demand for the property.
“We believe Bitcoin is in a new bull cycle. The ‘halving' marks the exception, where the natural Bitcoin selling pressure has halved (or more as you wait), while new incentives for Bitcoin demand are created, leading to massive price appreciation.”
Related: Bitcoin ETFs legitimize the crypto industry for investors
In addition to capital flowing into the spot Bitcoin ETFs, the pioneering cryptocurrency has seen significant institutional fund inflows.
Microstrategy, the largest corporate BTC holder, continues its BTC hoarding strategy, acquiring an additional 11,931 BTC for $786.0 million, according to founder and former CEO Michael Saylor.
The business intelligence firm now holds 226,331 BTC, which is roughly 1.15% of the global supply of Bitcoin.
Microstrategy has announced plans to issue a total of $800 million of convertible senior notes in 2032, with the proceeds increasing its Bitcoin holdings.
If Bitcoin continues to accumulate over the next few years, Bernstein predicts that the company's holdings could represent 1.5% of Bitcoin's total circulating supply by the end of 2025.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
