Bernstein analyst has predicted that Bitcoin’s price could skyrocket to $200,000 by the end of next year, with a longer-term target of an astonishing $1 million.
Bernstein’s bullish Bitcoin call was housed within analysis for MicroStrategy, the American software firm and largest corporate holder of Bitcoin. Bernstein highlighted the firm as an “active-leveraged” bet on Bitcoin compared to the passive nature of spot Bitcoin ETFs.
In a Thursday research note, the firm cited Bitcoin’s “supply being constrained” amid “unprecedented Bitcoin demand” from spot ETFs as two bullish factors. Previously, Bernstein estimated in March that Bitcoin could hit $150,000 by the end of 2025.
According to Bernstein’s latest research report, the anticipated surge in Bitcoin’s value is driven by a combination of factors including institutional adoption, increased retail interest, and potential regulatory clarity.
The analyst argues that as more companies and financial institutions integrate Bitcoin into their portfolios, the demand for the leading cryptocurrency will outstrip supply, pushing prices to unprecedented heights. “Bitcoin has proven to be a resilient asset with a growing acceptance in mainstream finance”
The world’s largest asset managers, including BlackRock and Fidelity, are now offering easy access to Bitcoin for individual investors—thanks partly to spot Bitcoin ETFs.
“We believe that the convergence of technological advancements, market maturity, and macroeconomic factors could propel Bitcoin to new all-time highs in the near future.” Furthermore, Bernstein’s report highlights the increasing interest from younger generations in digital assets as a store of value, akin to gold.
Analysts believe MicroStrategy will keep its edge as the top publicly traded Bitcoin holder and an indirect, leveraged bet on Bitcoin’s price. However, its advantage over spot ETFs is yet to be seen.
“MicroStrategy shares continue to offer investors looking to gain exposure to Bitcoin a number of important benefits, in our opinion, relative to spot ETPs,” TD Cowen analyst Lance Vitanza said.
Shares in MicroStrategy have surged 116% year-to-date to $1,484. In March, as Bitcoin’s price set a new all-time high, the firm’s stock price climbed as high as $2,000 before dipping down.
The expected increase in Bitcoin’s price can be traced to a four-year cycle the asset has historically followed, Bernstein analysts wrote. That cycle started anew, the firm said, when the rate at which new Bitcoin is mined was slashed in half in April as part of the so-called halving.
