Bernstein, a large asset management firm, has raised its Bitcoin price prediction for 2033 to an impressive $1 million. The firm initially predicted the price to reach $150,000 by 2025, but they have now increased this target to $200,000. Analysts at Bernstein believe that the recent surge in spot Bitcoin ETFs has been a significant factor in driving up the price of the cryptocurrency.
According to Gautam Chhugani and Mahika Sapra from Bernstein, the introduction of U.S regulated ETFs has been a crucial turning point for the crypto market, bringing in new demand from traditional investors. Since the launch of spot Bitcoin ETFs in January, these investment vehicles have seen inflows of over $15 billion. The analysts predict that by 2025, the global spot Bitcoin ETF market could make up around 7% of Bitcoin’s circulating supply.
In addition to the rise of spot ETFs, Bernstein analysts believe that Bitcoin is entering a new bull cycle. The recent halving of block rewards, which reduced the daily emission of bitcoins, combined with increasing demand and supply constraints, could drive the price of Bitcoin to over $200,000 by the end of next year.
Looking ahead to 2033, the analysts expect spot Bitcoin ETFs to make up approximately 15% of Bitcoin’s circulating supply. This, coupled with a potential rally in price based on production costs, could push the price of Bitcoin to over $1 million within the next eight years. Chhugani and Sapra foresee Bitcoin reaching $500,000 by the end of 2029 and surpassing $1 million by 2033.
In addition to their Bitcoin price predictions, Bernstein has also initiated coverage on MicroStrategy stock. The firm has assigned an outperform rating to MicroStrategy, a cloud analytics company that currently holds 214,400 bitcoins. Bernstein has set a price target of $2,890 for MicroStrategy by the end of 2025.
MicroStrategy recently announced a $700 million convertible notes sale, with the proceeds intended to purchase more bitcoins. This move highlights the growing trend of companies diversifying their balance sheets by investing in cryptocurrencies. Overall, the bullish outlook on Bitcoin and related stocks reflects a growing confidence in the long-term potential of digital assets in the financial market.