- Bernstein analysts have raised their Bitcoin price prediction from $150,000 to $200,000 by the end of 2025, driven by increased demand through ETFs and reduced supply due to the Bitcoin halving.
- Bernstein has also initiated coverage of MicroStrategy, assigning it an “outperform” rating with a price target of $2,890 by 2025.
Bitcoin is attracting more and more interest among analysts, experts and investors. Bernstein analysts, especially favorable to this important cryptocurrency, predict a significant rise in its price next year.
These optimistic forecasts are based on recent events that have significantly affected the cryptocurrency sector. With growing demand and limited supply, Bitcoin appears poised for a new bull cycle, according to the Crypto News Flash report.
Bernstein analysts have recently revised their Bitcoin price prediction, increasing their target from $150,000 to $200,000 by the end of 2025. This upward revision is due to two main factors: growing demand for Bitcoin through ETFs and declining of the cryptocurrency supply.
Leading global asset managers such as BlackRock, Fidelity and Franklin Templeton are fueling this surge in demand through their Bitcoin ETF funds.
Bernstein analysts estimate that these ETFs could manage about $190 billion in assets by 2025, up from $60 billion today. Bernstein analysts Gautam Chhugani and Mahika Sapra wrote:
We believe that regulated ETFs in the United States represented a watershed moment for cryptocurrencies, driving structural demand for traditional equity funds.
On the other hand, the recent halving event reduced the subsidy to miners from 6.25 BTC to 3.125 BTC, cutting the new daily supply of Bitcoin from 900 BTC to 450 BTC. This drop in supply, combined with the increase in demand, will also serve as a major catalyst for the rise in Bitcoin price. “We believe that Bitcoin is entering a new bullish cycle,” the analysts noted, highlighting the lower selling pressure from miners as a key factor.
Bernstein on MicroStrategy’s Bitcoin strategy
Analysts at Bernstein have also initiated coverage on MicroStrategy stock, assigning an “outperform” rating with a price target of $2,890 by the end of 2025. MicroStrategy currently holds 214,400 BTC, about 1.1% of the total supply in circulation, valued at more than 14 billion dollars.
The company continues its Bitcoin acquisition strategy through a $500 million senior convertible notes offering.
MicroStrategy has outperformed Bitcoin Spot, reaching a net asset value per share of 4x, versus 2.4x growth for Bitcoin Spot.
“Investors hold MSTR to gain active, leveraged exposure to Bitcoin stocks”
Analysts noted, emphasizing that the scarcity of corporate investment vehicles like MSTR in public markets increases the attractiveness of this strategy.
Bernstein’s forecasts indicate growing optimism towards Bitcoin, driven by structural factors such as increasing demand through ETFs and decreasing supply.
MicroStrategy’s proactive approach to acquiring Bitcoin underscores continued confidence in the cryptocurrency’s growth potential. These developments could have significant implications for investors and the broader cryptocurrency market.
At the time of writing, BTC is trading at $65,284 after a 2% drop in the last 24 hours. With this, the digital asset expands its losses weekly by 6.2%.
