According to analysts at research and brokerage firm Bernstein, Bitcoin (BTC) could potentially soar to nearly $200,000 by the end of the upcoming year. This optimistic forecast follows a surge in investments into spot U.S. Bitcoin exchange-traded funds (ETFs) since their approval in January. This new projection marks an increase from their previous target of $150,000.
The analysts’ prediction is based on the belief that spot Bitcoin ETFs could account for about 7% of the total circulating Bitcoin supply by the conclusion of 2025. In a note to clients, Bernstein analysts Gautam Chhugani and Mahika Sapra expressed their confidence in the imminent approval of Bitcoin ETFs at major wirehouses and large private bank platforms in the third and fourth quarters.
Currently, the majority of spot Bitcoin ETF investments, nearly 80%, come from self-directed retail investors utilizing broker platforms, while institutional integrations with wirehouses are still in their early stages. The analysts noted that the combined ETFs have brought in approximately $15 billion in net new investments. They anticipate that by 2025, Bitcoin ETFs could represent around 7% of the circulating Bitcoin and 15% by 2033.
Bernstein analysts also believe that the price of BTC has entered a new bull market cycle triggered by the recent Bitcoin halving event. They foresee additional catalysts emerging that will further boost demand for the cryptocurrency.
In addition to the influx of capital into spot Bitcoin ETFs, significant institutional funds have been pouring into the pioneer cryptocurrency. MicroStrategy, the largest corporate holder of BTC, continues to aggressively accumulate Bitcoin, recently acquiring an additional 11,931 BTC for approximately $786.0 million, according to founder and former CEO Michael Saylor. The business intelligence firm now holds 226,331 BTC, which is roughly 1.15% of Bitcoin’s total global supply.
MicroStrategy has announced plans to offer $800 million in convertible senior notes due 2032, with the proceeds intended to bolster its Bitcoin holdings. If the company persists in its Bitcoin accumulation over the next few years, Bernstein predicts that their holdings could potentially represent 1.5% of Bitcoin’s total circulating supply by the conclusion of 2025.
It is important to note that this article does not offer investment advice or recommendations. All investment and trading decisions involve risks, and readers are encouraged to conduct their own research before making any decisions.