Bernstein Research analysts project that Bitcoin could reach $200,000 by the end of 2025, a figure they consider “conservative” given the cryptocurrency’s anticipated growth trajectory.
This target builds on Bitcoin’s increasing institutional adoption, which is significantly fueled by U.S. spot Bitcoin ETFs approved earlier in the year.
These ETFs have already attracted over $60 billion in assets under management, a testament to institutional and retail interest. Analysts expect the ETF market share to grow further as major financial institutions integrate Bitcoin into their offerings.
The 2024 Bitcoin halving event, which reduced miner rewards from 6.25 to 3.125 BTC per block, has intensified scarcity and enhanced demand pressures on Bitcoin. Historically, each halving event has catalyzed bullish cycles by halving the volume of Bitcoin available to sell.
Bernstein suggests that diminishing miner sell pressure coupled with expanding adoption, especially from ETFs, positions Bitcoin for exponential gains. They project that ETFs could account for up to 7% of Bitcoin’s total supply by 2025, reinforcing Bitcoin’s status as a hedge in times of economic uncertainty.
Bitcoin’s price projection aligns with a broader “debasement trade,” where investors turn to assets like Bitcoin and gold as safeguards against inflation and geopolitical tensions. Institutional players and fund managers are increasingly adding Bitcoin to their portfolios as a diversification tool.
Bernstein’s outlook also points to corporate adoption, with companies like MicroStrategy exemplifying strategic Bitcoin accumulation. As ETFs become more widely available to institutional investors, they are likely to bolster Bitcoin’s appeal, propelling it closer to Bernstein’s price target.
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