Bernstein Analysts Forecast Bitcoin Reaching 1 Million Find Out When
The latest flagship crypto forecast has been unveiled as Bernstein introduces coverage of software developer MicroStrategy (NASDAQ: MSTR), the largest corporate holder of Bitcoin, with an “outperform” rating and a price target of $2,890.
According to Bernstein, the price of Bitcoin (BTC) is poised to reach $1 million by 2033 and could potentially reach a cycle-high of $200,000 by 2025. The investment firm states, “We derive the long-term market premium based on a probability-weighted scenario from our Bitcoin price model for 2029/2033. Our base case scenario predicts Bitcoin will 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 driven by spot Bitcoin exchange-traded funds (ETFs) managed by major asset managers such as BlackRock, Fidelity, and Franklin Templeton. They project that assets under management for these Bitcoin ETFs could rise to around $190 billion, up from the current $60 billion.
The analysts note, “We believe that U.S. regulated ETFs were a watershed moment for crypto, bringing in structural demand from traditional pools of capital.” They estimate that these ETFs have already brought in approximately $15 billion in combined net new flows. By 2025, Bitcoin ETFs are forecasted to hold about 7% of the Bitcoin in circulation, increasing to 15% by 2033.
Additionally, the recent Bitcoin halving event in April, which reduced miners’ block rewards from 6.25 BTC to 3.125 BTC, has further supported the surge in Bitcoin’s price. This halving event decreased the daily new supply of Bitcoin from 900 BTC to 450 BTC.
Bernstein’s analysts believe that Bitcoin is currently in a new bull cycle. They state, “The ‘halving’ reduces the natural sell pressure from miners by half or more as they hold inventory in anticipation, while new catalysts for Bitcoin demand emerge, leading to exponential price movements.”
Based on demand and supply mechanics that will significantly impact Bitcoin’s price in the coming years, increasing its scarcity and driving valuation, Bernstein’s base case estimates Bitcoin to reach $1 million by 2033.