Bernstein Raises Long-Term Bitcoin Price Projection to $1 Million by 2033, Begins MicroStrategy Coverage

Bernstein redoubled his optimism Bitcoin price projections, raising its long-term forecast to $1 million by 2033, driven by unprecedented demand and limited supply.

Bernstein analysts have also revised their forecasts for the current cycle and now project the flagship cryptocurrency to reach $200,000 by the end of 2025, up from their previous estimate of $150,000. The company also predicted that Bitcoin will rise to $500,000 by 2029.

Bernstein attributed the growth expectations to the growing demand for Bitcoin through multiple avenues, particularly newly launched ETFs and the trend of companies adding Bitcoin to their treasuries. The company said increased demand combined with reduced supply points to notable growth potential.

Despite Bitcoin’s recent struggle to maintain its position above $67,000, with prices falling to around $66,850, Bernstein’s bullish forecast highlights the long-term potential of the crypto market.

Analysts believe the broader economic environment, including easing U.S. inflation and changing political attitudes toward cryptocurrencies, supports a positive outlook for Bitcoin and Microstrategy like.

MicroStrategy Coverage

As part of his bullish outlook, Bernstein initiated coverage on MicroStrategy, giving it an Outperform rating with a $2,890 price target. The Virginia-based company, known for its significant Bitcoin holdings, closed at approximately $1,484 on June 14.

MicroStrategy, which holds about 214,400 bitcoins worth approximately $14.5 billion, has grown from a small software company to a major player in the crypto market over the past four years. The company adopted Bitcoin as a reserve asset in 2020, and its founder and president, michael saylorhas been a prominent supporter of digital currency.

Bernstein analysts Gautam Chhugani and Mahika Sapra highlighted Saylor’s strategic approach in positioning MicroStrategy as a leading Bitcoin company, writing:

“Michael Saylor has become synonymous with the Bitcoin brand, and MicroStrategy has positioned itself as an active leveraged Bitcoin strategy versus passive spot ETFs.”

According to the company, this active strategy resulted in higher Bitcoin per share compared to passive approaches.

MicroStrategy Stacking Bitcoin

MicroStrategy’s long-term financial strategy includes convertible debt, which allows the company to capitalize on Bitcoin’s upside potential while minimizing liquidation risks.

The company raised billions of dollars by multiple debt offerings to increase its BTC holdings in recent months.

The company recently proposed a US$500 million selling convertible note debt on June 13 to further increase its Bitcoin reserves. It later increased the amount to US$700 million on June 14.

Bernstein believes that MicroStrategy’s proactive stance and substantial holdings in Bitcoin position it to benefit significantly from the projected growth in the value of cryptocurrencies over the next decade.

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Published in: Bitcoin, Cryptography

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