Analysts at Bernstein have raised their bitcoin price target to $200k by the end of 2025, up 33% from their previous forecast of $150k
In the current cycle, which will last from 2024 to 2027, bitcoin may rise in price by 1.5 times the cost of mining, reaching a maximum of $200 thousand by mid-2025.
Bernstein analysts also predict that the bitcoin rate will exceed $500 thousand by the end of 2029 and reach $1 million by 2033.
The capitalization of the entire crypto market will triple
The cryptocurrency market may grow threefold by 2025. According to experts' calculations, the total market capitalization of cryptocurrencies will reach $7.5 trillion by the end of 2025. As of June 14, it is $2.56 trillion.
Capitalization growth will be aided by the expansion of the Bitcoin and Ethereum ecosystems, as well as the “unprecedented” institutional adoption of cryptocurrencies.
The capitalization of bitcoin, the flagship of the cryptocurrency industry, will reach $3 trillion by 2025. The Ethereum blockchain ecosystem, which powers many other cryptocurrencies and decentralized applications (DApps), is expected to reach a capitalization of $1.8 trillion by 2025. The combined capitalization of Solana and Avax blockchains could reach $1.4 trillion by 2025.
Successful development of the spot cryptocurrency exchange-traded fund (ETF) market
Analysts predict successful development of the market of spot cryptocurrency exchange-traded funds (ETFs). According to their forecasts, by 2025, assets under ETF management will grow to $190 billion from the current $58 billion. On the balance sheets of 11 bitcoin ETFs in the U.S. collected 850 thousand BTC - this is about 4.5% of all bitcoins in circulation.
The launch of bitcoin ETFs in the U.S. at the beginning of the year triggered an influx of capital into the market and became one of the catalysts of bitcoin price growth to its new all-time high of $74 thousand in March 2024.
The launch of ETFs in the US was a watershed moment for the cryptocurrency, bringing structural demand from traditional sources of capital. ETFs have attracted $15 billion in new cash flows. ETFs in the U.S. will accumulate about 7% of all bitcoins in circulation by 2025 and 15% of the total bitcoin supply by 2033.
Exchange traded funds (exchange traded funds, ETFs) allow you to trade the underlying asset in the form of shares. So-called spot ETFs involve the actual purchase of an asset (i.e., cryptocurrency) from the market to back the fund's shares.
The decline in the rate of new bitcoin issuance from 900 BTC to 450 BTC per day after the April halving was another factor affecting the bitcoin price.
Bitcoin is now in a new bull cycle. The halving creates a situation where the natural selling pressure from miners is halved (or even more as they accumulate more coins in anticipation of growth). At the same time, new factors stimulating demand for bitcoin emerge, leading to an exponential price increase. $BTC