Bernstein Analysts Increase Bitcoin Price Prediction to $200,000 by 2025

Analysts from Bernstein, a research and brokerage firm, have increased their price prediction for Bitcoin to $200,000 by the end of 2025. The firm had earlier forecasted a price target of $150,000 in April.

Factors That Will Drive the Surge

Bernstein’s BTC price forecast is driven by expectations of unprecedented demand from spot exchange-traded funds (ETFs) overseen by global leading asset managers like BlackRock, Fidelity, and Franklin Templeton.

According to analysts Gautam Chhugani and Mahika Sapra, these ETFs are expected to reach around $190 billion in assets under management, a significant increase from the current $60 billion.

They believe that the introduction of U.S. regulated ETFs was a crucial moment for crypto which attracted traditional capital. The firm estimates that by 2025, Bitcoin ETFs will represent about 7% of the circulating bitcoin and about 15% of the bitcoin supply by 2033. 

Furthermore, the analysts pointed out that the supply of Bitcoin is constrained following the recent halving in April, which reduced the miners’ block reward from 6.25 BTC to 3.125 BTC. The event resulted in the new supply of bitcoin falling from an average of 900 BTC per day to 450 per day.

“We believe Bitcoin is in a new bull cycle. The ‘halving’ presents a unique circumstance, where natural bitcoin sell-pressure from miners declines by half (or even more, as they inventory more in anticipation), while new catalysts for bitcoin demand arise, leading to exponential price moves,” the analysts said. 

Notably, Bernstein’s Bitcoin price predictions goes beyond next year as the analysts expects the leading cryptocurrency to reach $500,000 by the end of 2029 and $1 million by 2033.

Bernstein Coverage on MicroStrategy

In addition to their Bitcoin analysis, the BernsteinBernstein analysts also began coverage on business intelligence firm MicroStrategy, giving it an outperform rating. The firm set a price target of $2,890 for the stock by the end of 2025, which represents an 80% upside.

Known for its commitment to Bitcoin, MicroStrategy recently proposed a $500 million convertible senior note offering to acquire additional bitcoin and for general corporate purposes. This company owns approximately 1.1% of the global Bitcoin supply, valued at about $14.5 billion. The analysts forecast that the firm will own 1.5% of Bitcoin’s supply by the end of 2025.