Bernstein Analyst Predict BTC To Hit $200K BY 2025

The largest cryptocurrency by market cap Bitcoin is struggling 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 on the back of the surge in institutional interest, particularly through ETFs.

Bitcoin To Hit $200K BY 2025 End

While, Bitcoin’s price recently fell below $67,000 after a 9.8% rise last week that brought it close to $70,000. Despite this small drop, analysts at Bernstein believe that Bitcoin could reach $200,000 by the end of 2025. They say this prediction is “conservative,” especially given the 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 worth. With U.S. debt reaching $35 trillion and inflation still a concern, he suggests that if investors like 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 looking into stocks of companies like MicroStrategy and Robinhood. MicroStrategy holds a lot of Bitcoin in its treasury, while Robinhood is expanding its cryptocurrency services, giving investors more options.

Strong Interest in Bitcoin ETFs

Bernstein also points out a growing trend among big investors. They report that global asset managers have increased their investments in Bitcoin and Ethereum exchange-traded funds (ETFs) to nearly $60 billion in 2024. This is a big jump from just $12 billion in September 2023. 

Meanwhile, the firm calls the launch of Bitcoin ETFs a major success, with $18.5 billion coming in since they started in January. These ETFs are making it easier for large investors to enter the cryptocurrency market. 

Looking Ahead For 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 by 120% in the past year, with a market cap now over $1.3 trillion.

The report also mentions that as the cryptocurrency market grows, major financial institutions may take a bigger role. By 2024, they could even hold more Bitcoin than its original creator, Satoshi Nakamoto.