Analysts at Bernstein forecast Bitcoin reaching 1 million find out when
In a fresh analysis, Bernstein has begun coverage of software developer MicroStrategy (NASDAQ: MSTR), the largest corporate holder of Bitcoin, with an optimistic “outperform” rating and a target price of $2,890.
The forecast for Bitcoin (BTC) is looking promising, with expectations of reaching $1 million by 2033 and potentially hitting a peak of $200,000 by 2025, according to investment firm Bernstein. “We have calculated the long-term market premium based on a weighted scenario from our Bitcoin price model for 2029/2033. Our base case scenario predicts Bitcoin to appreciate to $200,000 by 2025, $500,000 by 2029, and $1 million by 2033.”
Analysts Gautam Chhugani and Mahika Sapra from Bernstein attribute this positive outlook to the expected surge in demand from spot Bitcoin exchange-traded funds (ETFs) managed by major asset managers such as BlackRock, Fidelity, and Franklin Templeton. They anticipate that assets under management for these Bitcoin ETFs could rise to about $190 billion from the current $60 billion.
The analysts noted, “We see U.S. regulated ETFs as a game-changer for the crypto market, bringing in significant demand from traditional sources of capital.” They estimate that these ETFs have already brought in approximately $15 billion in net new flows. By 2025, Bitcoin ETFs are projected to hold around 7% of the total circulating Bitcoin, increasing to 15% by 2033.
The recent halving event in April, which reduced miners’ block rewards from 6.25 BTC to 3.125 BTC, has also played a role in supporting Bitcoin’s price surge. This halving event led to a decrease in the daily new supply of Bitcoin from 900 BTC to 450 BTC. “We believe that Bitcoin has entered a new bullish cycle,” the analysts stated. “The halving event reduces the selling pressure from miners significantly, while new catalysts for Bitcoin demand are emerging, resulting in exponential price movements.”
Based on demand and supply dynamics that will impact Bitcoin’s price in the years to come, Bernstein’s base case scenario predicts Bitcoin to reach $1 million by 2033, driven by increased scarcity and valuation.
