According to CryptoPotato, Bernstein, a prominent brokerage firm, has expressed optimism about Bitcoin's future trajectory despite its recent struggle to reclaim its position above the all-time high of over $73,000. In a recent report, Bernstein analysts revised their long-term price forecast for Bitcoin, predicting it to reach $200,000 by the end of 2025, up from their previous prediction of $150,000.
The analysts attribute this bullish outlook primarily to their expectations around the growth of approved and regulated spot Bitcoin ETFs. They anticipate major asset managers such as BlackRock, Franklin Templeton, and Fidelity to continue seeing massive inflows over the next few years. Bernstein estimates that these regulated investment vehicles could collectively hold around $190 billion in assets by 2025, up from the current figure of around $60 billion.
The launch of these funds is viewed as a crucial event that will fuel traditional institutional capital into the crypto markets. The analysts predict that spot Bitcoin ETFs may represent around 7% of the total circulating Bitcoin supply by the end of 2025. Bernstein's report also suggests that Bitcoin has entered a new bull market cycle driven by the recent halving event. They expect new catalysts to emerge that will drive demand for the asset.
After hitting a cycle-high of $200,000 by 2025, Bernstein predicts that Bitcoin is likely to reach $1 million by 2033. The ETFs designed to track the cryptocurrency are expected to be equivalent to almost 15% of the total supply by the same year.
This year, Bitcoin has seen significant institutional funds pouring in. One of the largest institutional holders of the asset is MicroStrategy, whose aggressive accumulation strategy over the past four years has transformed the software firm into a major holder of the cryptocurrency. The firm now holds 1.1% of Bitcoin's total global supply. MicroStrategy announced its plans to offer $500 million aggregate principal amount of convertible senior notes due 2032, the proceeds of which will be used to boost its Bitcoin holdings. If it continues to accumulate Bitcoin over the next few years, Bernstein predicts that the company's holdings could grow to represent 1.5% of Bitcoin's total circulating supply by the end of 2025.