Bitcoin

Bitcoin Price Prediction: $500,000 by 2029 on Rising ETF Demand

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  • Bitcoin is predicted to reach $500,000 by 2029, according to Bernstein.
  • The bullish outlook is driven by a sustained boom in demand for bitcoin ETFs, combined with tight supply.
  • Bernstein started MicroStrategy shares at “Outperform” with a price target of $2,890.

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The price of Bitcoin is expected to rise to $500,000 by the end of the decade, according to a recent note from Bernstein.

In an introductory note Microstrategy shares, Bernstein analysts Gautam Chhugani and Mahika Sapra said bitcoin is poised to rise 659% from Friday afternoon levels to reach half a million dollars in 2029.

The culprit for the huge price surge is the growing demand for bitcoin ETFs, which have attracted tens of billions of dollars in assets since their launch earlier this year.

This growing demand, combined with a dwindling supply of bitcoin, creates a mature supply and demand dynamic that should the cryptocurrency’s price continue to rise.

“This is led by unprecedented demand for Bitcoin ($190 billion in AUM in 2025 versus $60 billion today) through ETFs managed by the world’s leading asset managers, and the supply of Bitcoin being limited,” said Bernstein .

Chhugani and Sapra said their base projection for the price of bitcoin is $200,000 by 2025, $500,000 by 2029 and $1 million by 2033.

Analysts previously expected bitcoin to reach a cycle high of $150,000 in 2025, but raised their estimates due to strong ETF inflows.

The company’s forecast was part of its note initiating coverage of Microstrategy, which Bernstein said is “building the largest Bitcoin company in the world.”

The firm rates MicroStrategy an “Outperform” with a $2,890 price target, representing a 94% potential upside from its Friday afternoon price.

Microstrategy has accumulated 1.1% of the total bitcoin supply, an amount worth around $14.5 billion. Meanwhile, MicroStrategy has a total market valuation of $26 billion.

Bernstein argues that MicroStrategy deserves the premium valuation as it offers investors an “actively leveraged” strategy compared to passive bitcoin ETFs.

“Over the past 4 years, MSTR’s active strategy has delivered a higher Bitcoin per share – BTC/share has grown 67%, i.e. from 6 Bitcoin per diluted share in Q4 2020 versus ~10 today,” said Bernstein.

Bitcoin traded just above $65,000 on Friday, about 12% below its record high of nearly $74,000.

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