Bitcoin projected to $200k by 2025: Bernstein Research

by

As an analyst with over two decades of experience in financial markets, I must admit that the bullish projections for Bitcoin are intriguing and potentially groundbreaking. The factors mentioned, such as institutional demand, regulatory changes, and political shifts, all play significant roles in shaping the future of cryptocurrencies.

By the end of the coming year, it’s anticipated that Bitcoin, the world’s first and most significant cryptocurrency, could potentially reach a value of $200,000. These predictions, originating from Bernstein Research, represent an increase from their previous price target of $150,000 set last year.

According to Bernstein Research, a financial institution specializing in investments and research, they’ve forecasted that the value of Bitcoin could reach as high as $200,000 by 2025. Factors contributing to this prediction include political events such as the U.S. election, increasing demand from institutions, widespread adoption, and possible regulatory adjustments which may cause the price of Bitcoin to soar towards these new heights.

On November 5, if Donald Trump wins the presidential election, there’s chatter suggesting that the SEC chairman and Treasury secretary roles could be appointed to individuals who are supportive of cryptocurrencies.

As a crypto investor, I’ve been intrigued by the rumors swirling around potential replacements for Janet Yellen as the ‘cash-keeper’. If true, the possibility of Howard Lutnick and Scott Bessent stepping into her shoes is quite fascinating. These two heavyweights from Cantor Fitzgerald and Key Square Group could bring a fresh perspective to the table, shaping the financial landscape in ways we can only imagine.

next year’s potential increase in the value of Bitcoin could be fueled by institutional demand, as significant corporations are increasingly investing in Bitcoin or crypto-related products like Exchange-Traded Funds (ETFs). Notably, Goldman Sachs recently increased their stake in BlackRock’s Spot Bitcoin ETF to $710 million, and the iShares Bitcoin Trust ETF (IBIT) as well. This suggests that institutional investment is a key factor driving the growth of Bitcoin in the coming year.

The United States Republican Senator, Cynthia Lummis, presented the Bitcoin Act and the Bitcoin Strategic Reserve initiative aimed at recognizing Bitcoin as an alternative financial reserve alongside gold.

Bitcoin bullish projection: $1 million by 2033

Bernstein analysts estimate that a Bitcoin ETF might make up approximately 15% of the total digital gold supply in circulation by the year 2033. If the price of Bitcoin is related to the cost of its production, it could potentially reach over $500,000 by the end of 2029 and surpass $1 million by the end of 2033.

According to analysts Gautam Chhugani and Mahika Sapra at Bernstein, the introduction of regulated ETFs (Exchange Traded Funds) in the U.S. was a pivotal event for cryptocurrencies, as it attracted institutional investment from traditional financial resources.

Over the past few months since its launch in January of this year, as reported by CoinMarketCap, the Bitcoin spot ETF has witnessed approximately $28 billion worth of investments flowing into it. Furthermore, this trend has encouraged various countries to introduce similar products within their own markets.

Read More

2024-11-19 08:22