Bitcoin has been a hot topic lately, with analysts setting new price targets that have caught the attention of many investors. According to Bernstein analysts Gautam Chhugani and Mahika Sapra, Bitcoin is predicted to hit $200,000 by 2025 and $1 million by 2033. This is a significant increase from their previous prediction of $150,000 by 2025. The analysts believe that institutional demand for Bitcoin is one of the key factors that could drive the price of the flagship cryptocurrency to such lofty heights.
One of the reasons for this bullish outlook is the expected increase in demand for Spot Bitcoin ETFs, which could see Bitcoin under management reach $190 billion by 2025. This is a substantial jump from the current $60 billion in Bitcoin that funds issuers already have under management. The analysts also point out that as Spot Bitcoin ETFs accumulate more of the cryptocurrency, the supply of Bitcoin in circulation is likely to decrease, further driving up the price.
Additionally, with two Bitcoin halvings expected to occur before 2033, the supply of Bitcoin from miners is set to decrease, providing further support for the analysts’ prediction of Bitcoin reaching $1 million. These factors, combined with the growing institutional interest in Bitcoin, paint a positive picture for the future of the cryptocurrency.
In a related development, Bernstein analysts also initiated coverage on MicroStrategy, giving the software company an outperform rating. They predict that MicroStrategy’s stock could rise to $2,890, representing a 95% increase from its current value of around $1,500. The analysts attribute this potential growth to MicroStrategy’s exposure to Bitcoin, with the company already owning 1.1% of Bitcoin’s total supply, valued at around $14.5 billion.
MicroStrategy’s commitment to becoming the world’s largest Bitcoin company has already paid off, with the company’s co-founder Michael Saylor becoming synonymous with the Bitcoin brand. The company’s strategic acquisition of Bitcoin has helped attract significant capital, both debt and equity, for its Bitcoin acquisition strategy. MicroStrategy’s Bitcoin net asset value per share has seen impressive growth, outpacing the growth in Bitcoin’s spot price.
Overall, the outlook for Bitcoin and companies like MicroStrategy that are heavily invested in the cryptocurrency appears positive. With growing institutional interest and strategic acquisitions, Bitcoin’s price trajectory seems set to continue its upward trend in the coming years. Investors and enthusiasts alike will be watching closely to see if these predictions come to fruition.
