Financial Titan Bernstein Predicts Bitcoin To $1 Million, Here’s When
In an analysis released on Thursday, the world’s leading investment firm AllianceBernstein with assets under management worth $ 725 billion raised its Bitcoin price significantly, predicting that the main cryptocurrency will reach $ 1 million in 2033. This bullish view is underscored by a new wave of acquisitions in the US. area Bitcoin exchange-traded funds (ETFs) managed by heavy asset managers including BlackRock, Fidelity, and Franklin Templeton.
Bitcoin’s Path to $1 Million by 2033
Analysts Gautam Chhugani and Mahika Sapra of Bernstein detailed a scenario in which they expect assets under management of Bitcoin-related ETFs to rise to around $190 billion by 2025, a huge jump from the current $60 billion. The report says, “We believe that regulated ETFs in the US have been a watershed moment for crypto that has brought structural demand from the pools of the traditional economy.”
They highlighted the huge impact of these funds, which have already injected nearly $15 billion in new capital into the market.
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The report states that by 2025, Bitcoin ETFs will represent approximately 7% of all Bitcoins in circulation, and by 2033, this figure may rise to approximately 15% of the total Bitcoin volume. This significant increase in institutional interest and investment is poised to play a significant role in increasing the price of Bitcoin.
A critical aspect of Bernstein’s analysis is the effect of Bitcoin’s supply mechanics, particularly halving events. The most recent halving in April cut the block reward for miners from 6.25 BTC to 3.125 BTC, effectively reducing the new daily supply from 900 BTC to 450 BTC.
According to Chhugani and Sapra, “The halving presents a unique situation, where Bitcoin’s natural selling-pressure from miners decreases by half (or even more, as it writes more than expected), while new things appear that cause the demand for bitcoin, leading to higher prices. It moves. “
Historically, after halving events, BTC has experienced significant price rallies. Analysts draw on past cycles for context: in 2017, Bitcoin rose to nearly five times its production cost, then fell to 0.8 times the following year. A similar pattern was observed in the 2021 cycle.
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For the 2024-27 cycle, they project a steady yet massive 1.5-fold increase in Bitcoin’s marginal cost of production, translating to a predicted mid-cycle peak of $200,000 in mid-2025. In the next cycle, Bernstein expects the value of Bitcoin to reach half a million US dollars in 2029, before breaking the $1 million mark four years later.
Outlook for MicroStrategy
In line with their view on Bitcoin, Bernstein also reintroduced MicroStrategy with an outperform rating, targeting a $2,890 price target for the stock by the end of 2025. MicroStrategy has become notable for its BTC acquisition strategy, now holding 214,400 BTC, or 1.1% of the circulating cryptocurrency supply, valued at $14.5 billion.
MicroStrategy’s aggressive acquisition of Bitcoin, which is backed by convertible notes—a type of long-term debt that turns into stock under certain conditions—reflects a strong investment strategy that analysts believe offers “limited sell-off risk” due to the already profitable nature of their assets. based on today’s Bitcoin prices. They foresee MicroStrategy’s holdings rising to 1.5% of the Bitcoin supply by 2025.
At press time, BTC traded at $66,946.
The featured image was created with DALL·E, a chart from TradingView.com
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