By the end of 2025, it will increase to 200 thousand dollars

Bitcoin may have struggled to regain its position above the recently established all-time high of $73,000, but the well-known brokerage firm Bernstein is optimistic about the future direction of the asset.

In a recent report, Bernstein analysts raised their long-term price forecast for BTC to $200,000 by the end of 2025. The company had previously predicted the cryptocurrency to hit $150,000 that year.

Bernstein's bold predictions for Bitcoin

Analysts attribute this renewed bullish outlook primarily to their speculation around the growth of regulated and regulated Bitcoin ETFs. Major asset managers such as BlackRock, Franklin Templeton and Fidelity expect to continue to see significant inflows over the next few years.

Bernstein also estimates that these regulated investment vehicles could hold nearly $190 billion in assets by 2025, up from $60 billion today. These analysts see the launch of the fund as a significant event that will bring traditional institutional capital into the crypto markets.

They also predicted that the Spot Bitcoin ETF could represent 7% of the total BTC supply by the conclusion of 2025.

Bernstein's report also notes that Bitcoin has entered a new bull market cycle driven by the recent halving event. At the same time, analysts expect the emergence of new indicators that will drive demand for the asset.

“We believe bitcoin is in a new bull cycle. The ‘halving' represents a unique scenario, where natural bitcoin selling-pressure by miners has halved (or more eagerly awaited), while new indicators of bitcoin demand are created, leading to higher price inflation.”

In the year After hitting a peak of $200,000, Bernstein said that BTC will reach $1 million by 2033, and ETFs designed to track the cryptocurrency will account for 15% of the total supply in the same year.

Bernstein Microstrategy Bitcoin Strategy

Bitcoin has seen a significant influx of institutional funds this year. One of the largest institutional owners of the asset is MicroStrategy, whose massive fundraising strategy over the past four years has made the software firm the cryptocurrency's dominant owner.

The business intelligence firm founded by Michael Saylor now accounts for 1.1 percent of the total global supply of bitcoin. Interestingly, Microstrategy in 2010 It announced plans to issue $500 million in aggregate principal amount of convertible senior notes in 2032, the proceeds of which will be used to increase its Bitcoin holdings and for other corporate purposes.

If BTC 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.