Analysts at private wealth management firm, Bernstein, have once again reiterated their bold prediction for Bitcoin’s price, stating that they believe the cryptocurrency has a strong chance of reaching $150,000 by the year 2025. This reaffirmation comes after their initial forecast in November 2023, when they first made the prediction. At that time, Bitcoin was trading at around $35,000, making their estimate roughly five times the current price of BTC. Now, with Bitcoin recently hitting new all-time highs above $71,000, the analysts at Bernstein are more convinced than ever that their forecast may come to fruition.
Bernstein analysts, Gautam Chhugani and Mahika Sapra, have pointed out several factors that could potentially contribute to Bitcoin’s bullish momentum in the coming years. One key factor they mentioned is the increasing demand for Spot Bitcoin Exchange Traded Funds (ETFs). The analysts estimated that there could be $10 billion in inflows for the year 2024, with an additional $60 billion coming in 2025. Since the launch of the Bitcoin ETF on January 10th, there has already been over $9.5 billion in inflows, indicating a strong interest in Bitcoin among investors.
In addition to the inflows from ETFs, the Bernstein analysts also believe that Bitcoin’s price could experience a significant breakout following the halving event in April 2024. Despite a slight price correction of around 6.96% in the past 24 hours, Bitcoin is currently trading at $68,218, indicating that there is still strong support for the cryptocurrency. The analysts highlighted that investing in Bitcoin miners could be a good way to gain exposure to BTC, as miners tend to outperform during bullish cycles and underperform during bearish periods.
As Bitcoin continues to rise to new highs, Bernstein analysts expect that institutional interest in Bitcoin-related equities, such as mining companies, will also increase. They believe that BTC miners could be among the biggest beneficiaries of this trend. Despite concerns that the next Bitcoin halving could negatively impact small mining companies, the analysts pointed out that the rising price of BTC and transaction fees could help cushion the impact during the halving period.
The analysts at Bernstein remain optimistic about Bitcoin’s future price potential, with their forecast of $150,000 by 2025 looking increasingly probable. However, it is important to keep in mind that investing in cryptocurrencies carries inherent risks, and individuals should conduct their own research before making any investment decisions. As always, it is crucial to be cautious and informed when dealing with volatile assets like Bitcoin.