TL;DR
- Bernstein raises its Bitcoin price projection to $200,000 by 2025, driven by strong capital flows into BTC ETFs in the U.S.
- BTC ETFs are expected to represent approximately 7% of the total BTC supply by 2025, boosting adoption in the traditional financial market.
- BTC projections suggest a value of up to $1 million by 2033.
Analysts at research and brokerage firm Bernstein have raised their projections for Bitcoin’s price in the coming years, targeting a value of up to $200,000 by 2025. This upward revision is based on the strong inflow of investments into Bitcoin exchange-traded funds (ETFs) in the United States since their approval earlier this year.
Bernstein initially set a target of $150,000 for 2025 but has now raised its expectations, anticipating an even higher value due to increasing institutional and retail interest in these investment vehicles. According to analysts, BTC ETFs are expected to represent approximately 7% of the total BTC supply in circulation by 2025, a result of widespread adoption in the traditional financial market.
Gautam Chhugani and Mahika Sapra, analysts at the firm, argue that Bitcoin ETFs are on track to be approved on major bank platforms and financial institutions in the third and fourth quarters of this year. Such integration with large financial institutions could mark a turning point in BTC adoption and solidify it as an essential investment asset.
Institutional Capital Participation in Bitcoin ETFs is Still Needed
The analysis also points out that currently, nearly 80% of BTC ETF flows come from self-directed retail investors through brokerage platforms, while institutional participation is still in its early stages and expected to develop in the near future. Institutional investors are evaluating long positions in BTC, anticipating a strategic opportunity to increase their exposure to the leading cryptocurrency.
In addition to the success of ETFs, Bernstein observes that BTC is in a new bullish cycle, bolstered by the halving event and the decrease in selling pressure from miners. These combined factors are expected to catalyze exponential price movements in the coming years.
According to Bernstein, BTC is not only expected to reach $200,000 by 2025 but could surpass this and reach $500,000 by 2029 and even $1 million by 2033. It is highly positive that firms of this caliber show strong confidence in the sustainability and growth potential of Bitcoin as a long-term investment asset.
