Bernstein’s analyst predicts that BTC will reach $200,000 by 2025
The largest cryptocurrency by market capitalization has struggled to gain momentum despite growing institutional and retail interest. Meanwhile, Bernstein, a well-known research and brokerage firm, has predicted that the cryptocurrency could reach $200,000 by the end of 2025 based on institutional demand, especially through ETFs.
Bitcoin will reach $200 thousand by the end of 2025
After a 9.8% gain last week, the price of Bitcoin recently fell below $67,000, bringing it to $70,000. Despite this small drop, analysts at Bernstein believe that Bitcoin may reach $200,000 by the end of 2025. They say this forecast is “conservative”, especially given the current high levels of US debt.
Meanwhile, Gautam Chugani, head of digital assets at Bernstein, says bitcoin's limited supply makes it valuable. In a recent message to clients, he urged Bitcoin skeptics to reconsider its value. With US debt reaching $35 trillion and inflation still a concern, it suggests that if investors like gold as a safe-haven asset, they should be excited about Bitcoin as well.
For those who don't want to invest directly in Bitcoin, Bernstein suggests looking at stocks of companies like MicroStrategy and Robinhood. MicroStrategy holds more bitcoins in its treasury, while Robinhood is expanding its cryptocurrency offering to offer investors more options.
Strong interest in Bitcoin ETFs
Bernstein points to a growing trend among big investors. Global asset managers have reported increasing their investments in Bitcoin and Ethereum exchange-traded funds (ETFs) to nearly $60 billion by 2024. That's a big jump from $12 billion in September 2023.
Meanwhile, the company is calling the launch of the Bitcoin ETF a huge success, bringing in $18.5 billion since they launched in January. These ETFs are facilitating entry into the cryptocurrency market for large investors.
Looking forward to Bitcoin
Looking ahead, Bernstein is optimistic about the future of Bitcoin. They expect that with more institutional interest, Bitcoin can reach $200,000 in 2025. This optimism comes from the fact that Bitcoin has already increased by 120% in the last year, the market value is now more than 1.3 trillion dollars.
The report also mentions that major financial institutions could play a major role as the cryptocurrency market continues to grow. By 2024, you will own more Bitcoin than its original creator, Satoshi Nakamoto.
