Far from being a simple utopia, the idea of a $200,000 bitcoin could come to fruition very soon. Bernstein analysts have just thrown a wrench into the pond with their latest prediction. But what could propel the flagship crypto to such heights and how long will it take for this prediction to come to fruition?
Bitcoin at $200,000: Bernstein analysts’ bold prediction
Bernstein analysts recently raised their price prediction for bitcoin to $200,000, up from the previous target of $150,000. They base this estimate on the “new Bitcoin cycle thesis” which predicts increasing adoption by global institutional investors and asset managers. According to them, the negative sentiment linked to regulation is diminishing, paving the way for a new wave of institutional investments.
Analysts point out that interest in Bitcoin ETFs is booming. Since BlackRock's ETF filing in June 2023, the price of bitcoin has surged 150%. They anticipate increased adoption of Bitcoin ETFs by large private banks and asset management platforms by the end of the year.
When will the prediction come true?
Another key factor mentioned by Bernstein experts is the progression of bitcoin wallet allocations. Currently, around 22% of assets under management are led by institutional investors, with 36% coming from hedge funds. Bernstein analysts believe these investors will gradually move to long positions, contributing to future growth.
Bernstein's note compares current bitcoin price levels to previous cycles, suggesting that despite the recent rally, bitcoin remains attractive and undervalued at its current levels. They conclude that asset managers have strong incentives to strengthen their marketing and distribution efforts to grow their crypto business. According to Bernstein's predictions, bitcoin could reach $200,000 by 2025, supported by these market dynamics and renewed interest from financial institutions.
The implications of this analysis are broad. If Bernstein's predictions come true, it could significantly change the crypto investment landscape, attracting even more institutions and retail investors to the bitcoin market.
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