Bernstein, a prominent asset management company boasting over $750 billion in assets, is reinforcing its Bitcoin price forecast by increasing its target for 2025 from $150,000 to $200,000. The outlook for 2033 is an astonishing $1 million.
Analysts at the firm unveiled their price prediction for the leading cryptocurrency on Friday. In a communication to clients, the research firm expressed that the rise in spot Bitcoin ETFs is a positive catalyst for the market.
“We believe that the introduction of U.S regulated ETFs marked a pivotal moment for crypto, attracting significant demand from traditional sources of capital,” noted Bernstein’s Gautam Chhugani and Mahika Sapra.
Since their launch in early January, spot Bitcoin ETFs have seen inflows of over $15 billion. According to analysts, the global spot Bitcoin ETF market could potentially make up around 7% of BTC’s circulating supply by 2025.
BTC projected to reach $1 million by 2033
In addition to the spot ETF market, Bernstein analysts have indicated that Bitcoin is entering a new bullish cycle.
The recent halving of block rewards, reducing daily emission from approximately 900 bitcoins to 450 bitcoins, is another contributing factor. They highlighted that a surge in demand amid a supply shortage could drive the price of BTC to over $200k by the middle to end of next year.
The analysts also anticipate that spot Bitcoin ETFs could make up roughly 15% of the circulating supply of “digital gold” by 2033. Should there be a rally in price relative to the marginal cost of production, this could lead to a surge to over $1 million in the next eight years.
Gautam Chhugani and Mahika Sapra foresee Bitcoin reaching $500,000 by the end of 2029 and over $1 million by 2033.
Bernstein has also started covering the MicroStrategy stock, giving it an outperform rating with a price target of $2,890 by the end of 2025.
MicroStrategy (MSTR) is an AI-driven cloud analytics company that currently holds 214,400 bitcoins. The company has announced a $700 million convertible notes sale with the proceeds intended to purchase more BTC.