Bitcoin Will Reach $200,000 By 2025, Microstrategy Will Be Better: Bernstein

Despite the asset's recent weakness, BTN's value is poised to hit an additional $200,000 next year, according to international investment firm AllianceBernstein.

In a research note Thursday, the firm cited bitcoin's “constrained supply” as two key factors amid “unprecedented demand for bitcoin” from spot ETFs. Earlier in March, Bernstein estimated that Bitcoin could reach $150,000 by the end of 2025.

Bernstein's upward revision coincided with a headwind in the crypto market on Thursday, which brought in millions of dollars. Liquid crypto spaces When the price of Bitcoin drops to $65,000. The asset has struggled to reach all-time highs since its price peaked around $73,000 in March.

Regardless, Bernstein analysts estimate that Bitcoin ETFs will have $190 billion in assets under management by the end of 2025. So far in January, the approved products segment has raised $53 billion in AUM across nearly a dozen offerings. CoinGlass.

Bernstein's Bitcoin call is captured in a microstrategy analysis for the American software firm and Bitcoin's largest corporate owner. Bernstein highlighted the firm's “actively-backed” bets on Bitcoin as compared to the passive nature of Bitcoin ETFs.

Announcing that it will happen Sell ​​more debt to buy Bitcoin Earlier in the day, MicroStrategy's holdings were 214,400 bitcoins worth around $14.3 billion, as of this writing. Bernstein analysts note that MicroStrategy is the only firm using the capital markets to buy specific bitcoins.

“We believe MSTR's long-term convertible debt strategy will allow sufficient time for Bitcoin's upside,” Bernstein analysts gave the Michael Salor-founded firm an “outperform” rating in a note. He said.

Shares in MicroStrategy are up 116 percent year-to-date to $1,484. In March, when the price of Bitcoin set a new all-time high, the company's stock price soared to $2,000 before declining.

The expected rise in Bitcoin's price may coincide with the four-year cycle that the asset has historically followed, Bernstein analysts wrote. The company says that cycle starts anew when new bitcoins are produced. It will be reduced by half in April A component called halving.

As spot Bitcoin ETFs continue to accumulate earnings, Bernstein wrote that the move is “laying the groundwork for a breakout phase” in Bitcoin's price. That could give way to an idea level where “investors assume unrealistic price targets” in the face of mass demand, analysts wrote.

Looking beyond 2025, Bernstein analysts predict that cryptocurrency will They stated that it could touch $500,000 by the end of 2029, followed by Bitcoin's $1,000,000 by the end of 2033.

Edited by Andrew Hayward.