Bitcoin is attracting growing interest among analysts, experts and investors. Bernstein analysts, particularly confident in this flagship cryptocurrency, predict an explosion in its price by next year. These optimistic forecasts are based on recent events that have had a profound impact on the crypto industry. Between increased demand and limited supply, bitcoin could well be on the cusp of a new bull cycle.
Bernstein analysts think big for bitcoin
Bernstein analysts recently revised their prediction for the price of bitcoin, increasing their target from $150,000 to $200,000 by the end of 2025. This revision is primarily driven by two key factors: increasing demand for bitcoin via ETFs and reducing supply of the flagship crypto.
On the one hand, major global asset managers, including BlackRock, Fidelity and Franklin Templeton, are driving increased demand through their Bitcoin ETF funds. Bernstein analysts estimate that these ETFs could manage around $190 billion in assets under management by 2025, up from $60 billion today. “We believe that U.S. regulated ETFs represented a watershed moment for crypto, driving structural demand from traditional capital pools,” wrote analysts Gautam Chhugani and Mahika Sapra.
On the other hand, the latest halving reduced the overall miner subsidy from 6.25 BTC to 3.125 BTC, decreasing the new bitcoin supply from 900 BTC to 450 BTC per day. This decrease in supply, coupled with increasing demand, is seen as a major catalyst for the rise in bitcoin prices. “We believe bitcoin is in a new bull cycle” analysts said, highlighting the easing of selling pressure from miners.
Bernstein initiates coverage on MicroStrategy with an outperform rating
Bernstein analysts also initiated coverage on MicroStrategy stock, forecasting an outperform rating with a price target of $2,890 by the end of 2025. MicroStrategy already holds 214,400 BTC, or about 1.1% of the total circulating supply, valued at more than $14 billion. The company continues to acquire additional bitcoin through a $500 million senior convertible note offering.
MicroStrategy's strategy outperformed spot bitcoin, with 4x net asset value per share compared to 2.4x growth for spot bitcoin. “Investors own MSTR to gain active, leveraged exposure to bitcoin stocks,” analysts noted, adding that the scarcity of corporate bitcoin investment vehicles such as MSTR in publicly listed markets reinforces the attractiveness of this strategy.
Bernstein analyst forecasts reveal growing optimism for bitcoin, supported by structural factors like increasing demand via ETFs and decreasing supply. MicroStrategy's proactive strategy in acquiring bitcoin underscores continued confidence in the cryptocurrency's growth potential. These developments could have significant implications for investors and the cryptocurrency market as a whole.
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