• Bernstein projects Bitcoin to reach $200K by 2025, driven by institutional demand and limited supply.
  • Bitcoin’s scarcity makes it a strong inflation hedge, with rising U.S. debt boosting its long-term value.  
  • Spot Bitcoin ETFs and mining firms like Riot Platforms offer indirect investment opportunities for growth.

Bitcoin is expected to reach $200,000 by the end of 2025 according to Bernstein. This projection, which the firm describes as “conservative,” is based on growing institutional adoption and the limited supply of Bitcoin.

JUST IN: $725 billion Bernstein predicts #Bitcoin will hit $200,000 in 2025, calling the forecast “conservative.” pic.twitter.com/Ca0w2dIBJE

— Bitcoin Magazine (@BitcoinMagazine) October 23, 2024

Gautam Chhugani, digital assets lead at Bernstein, addressed clients in a report on Wednesday. He stressed that Bitcoin’s value debate becomes even more attractive if US debt levels reach historic highs, currently around $35 trillion. 

Institutional Adoption Fueling Bitcoin’s Growth

The release of Bernstein’s Bitcoin Blackbook further demonstrates their belief in Bitcoin’s investment potential. The paper intends to make cryptocurrency more accessible to institutional investors, who are likely to play a significant role in its price growth.

Aside from direct Bitcoin investments, the firm also mentioned additional exposure strategies. Companies such as MicroStrategy and Robinhood provide indirect opportunities for investors. Bernstein analysts noted that such companies provide exposure without really holding the coin.

Bernstein also noted the ongoing consolidation in Bitcoin mining companies, such as Riot Platforms and CleanSpark . These companies are acquiring massive amounts of power for mining operations, which might result in major revenue as Bitcoin’s price increases.

Bitcoin ETF Demand

The rising demand for spot Bitcoin exchange-traded funds is a key driver of Bitcoin’s growth. These financial products enable investors to obtain exposure to Bitcoin via traditional stock exchanges, making them a safer and more accessible option for institutions.

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Earlier, Bernstein had estimated that Bitcoin could hit $90,000 if Trump is elected.. Now they anticipate demand will push the asset even higher, with a new price target of $200,000.

In the short term, Bitcoin’s price could be volatile. On the contrary, Bernstein analysts are of the opinion that the restricted supply of the asset and institutional investment will ensure the long term outlook remains positive.

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