The largest cryptocurrency by market capitalization Bitcoin has struggled to gain momentum despite growing institutional and retail demand. Meanwhile, Bernstein, a well-known research and brokerage firm, predicted that the cryptocurrency could reach $200,000 by the end of 2025 due to the surge in institutional interest, especially through ETFs.
Bitcoin will reach $200,000 by the end of 2025
While Bitcoin’s price recently fell below $67,000 after surging 9.8% last week, bringing the price close to $70,000. Despite this small decline, Bernstein analysts believe Bitcoin could reach $200,000 by the end of 2025. They say this forecast is “conservative,” especially given current high levels of U.S. debt.
Meanwhile, Gautam Chhugani, who leads digital assets at Bernstein, notes that Bitcoin’s limited supply makes it valuable. In a recent message to clients, he urged those skeptical about Bitcoin to reconsider its value. With the US national debt reaching $35 trillion and inflation still a concern, he suggests that if investors see gold as a safe asset, they should also be excited about Bitcoin.
For those who may not want to invest directly in Bitcoin, Bernstein suggests investigating stocks of companies like MicroStrategy and Robinhood. MicroStrategy has a lot of Bitcoin in its coffers, while Robinhood is expanding its cryptocurrency services, giving investors more options.
Strong interest in Bitcoin ETFs
Bernstein also points to a growing trend among major investors. They report that global asset managers have increased their investments in Bitcoin and Ethereum exchange-traded funds (ETFs) to nearly $60 billion by 2024. This is a big jump from just $12 billion in September 2023.
Meanwhile, the company is calling the launch of Bitcoin ETFs a huge success, with $18.5 billion in revenue since its inception in January. These ETFs make it easier for large investors to enter the cryptocurrency market.
Looking ahead to Bitcoin
Looking ahead, Bernstein is hopeful about Bitcoin’s future. They expect that with more institutional interest, Bitcoin could reach $200,000 by 2025. This optimism comes as Bitcoin has already risen 120% in the past year, with a market capitalization now over $1.3 trillion.
The report also notes that as the cryptocurrency market grows, major financial institutions could play a bigger role. By 2024, they could own even more Bitcoin than its original creator, Satoshi Nakamoto.
