Cryptocurrency research company Bernstein has recently shared their predictions for the Bitcoin price in 2025 following a market crash. The firm, well-known for its analysis and brokerage services, anticipates that spot Bitcoin ETFs are on the verge of approval by major brokerages and maintains a target price of $200,000 for Bitcoin by the end of 2025.
Despite some skepticism surrounding spot Bitcoin ETF trading, Bernstein analysts believe that two crucial factors are being overlooked. While critics argue that early individual investor allocations are the main driving force behind Bitcoin ETF trading, with institutional involvement limited to basic trading strategies, Bernstein argues that institutional basis trading is crucial for widespread adoption. Institutional investors are increasingly considering long positions as they find comfort in the growing liquidity of ETFs.
Furthermore, Bernstein points to the rising adoption of Bitcoin as a treasury reserve asset as another key factor in their price prediction. New guidelines have made it easier for companies to include Bitcoin on their balance sheets, considering market gains rather than just impairment losses. The analysts anticipate a surge in demand from corporate treasuries in 2024, with companies like MicroStrategy and BTC miners already leading the way.
Despite recent net outflows in U.S. spot Bitcoin ETFs, Bernstein expects net inflows to pick up again, particularly in the volatile market conditions of Q3/Q4. The analysts have raised their price targets for Bitcoin, aiming for $200,000 by 2025, $500,000 by 2029, and $1 million by 2033. They emphasize that the current price range of around $60,000 is comparable to prices below $10,000 in June 2020, highlighting the significant growth potential for Bitcoin.
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