Bitcoin
Bitcoin Price Will Hit $200,000 in 2025, MicroStrategy Will Outperform: Bernstein
Despite the asset’s recent weakness, BitcoinThe company’s price is expected to reach $200,000 in the next year or so, according to global investment firm AllianceBernstein.
In a Thursday research note, the firm cited “tight supply” of Bitcoin amid “unprecedented Bitcoin demand” from spot ETFs as two bullish factors. Previously, Bernstein estimated in March that Bitcoin could reach $150,000 by the end of 2025.
Bernstein’s upward revision on Thursday coincides with headwinds in the crypto market, generating millions of dollars in liquidated crypto positions as the price of Bitcoin fell to $65,000. After its price peaked around $73,000 in March, the asset has struggled to reclaim all-time highs.
Regardless, Bernstein analysts predict that spot Bitcoin ETFs will have $190 billion in assets under management (AUM) by the end of 2025. So far, the product class approved in January has accumulated $53 billion in AUM in almost a dozen offers, for CoinGlass.
Bernstein’s bullish decision on Bitcoin was included in analysis by MicroStrategy, the American software company and largest corporate holder of Bitcoin. Bernstein highlighted the company as an “actively leveraged” bet on Bitcoin compared to the passive nature of spot Bitcoin ETFs.
Announcing it would be sell more debt to buy Bitcoin At the start of the day, MicroStrategy’s supply of 214,400 Bitcoins was worth about $14.3 billion at the time of writing. Bernstein analysts noted that MicroStrategy is distinct in that it is the only company leveraging capital markets to specifically purchase Bitcoin.
“We believe MSTR’s long-term convertible debt strategy allows sufficient time to gain from Bitcoin upside, with limited liquidation risk for its Bitcoin on balance sheet,” the Bernstein analysts wrote, giving the firm co-founded by Michael Saylor a “superior performance” rating. .”
MicroStrategy shares are up 116% year to date to $1,484. In March, when the price of Bitcoin reached a new all-time high, the company’s share price rose to $2,000 before falling.
The expected rise in Bitcoin’s price can be attributed to a four-year cycle that the asset has historically followed, Bernstein analysts wrote. This cycle began again, the company said, when the rate of mining new Bitcoins was cut in half in April as part of the so-called halving.
As Bitcoin spot ETFs continue to accumulate inflows, Bernstein wrote that the activity is “laying the groundwork for the breakout phase” in Bitcoin’s price. This could give way to a so-called hype phase, the analysts wrote, where “investors imagine unrealistic price targets” amid mass interest.
Looking beyond 2025, Bernstein analysts posited that the cryptocurrency could reach $500,000 by the end of 2029, followed by a lull before Bitcoin reaches $1,000,000 by the end of 2033.
Edited by Andrew Hayward