- Bernstein predicts Bitcoin could reach $1 million by 2033, with $200,000 by next year.
- Increasing institutional adoption and limited supply are key factors driving the BTC price.
Renowned asset manager Bernstein projects that Bitcoin’s (BTC) value will reach $1 million by 2033, possibly peaking at $200,000 as early as next year. This audacious forecast follows Bernstein’s “outperform” rating of MicroStrategy, the biggest corporate Bitcoin holding.
Right now, MicroStrategy owns about $14.5 billion, or 1.1% of the total BTC supply. A Bernstein research report claims that the company has evolved from a little software startup to a cryptocurrency industry leader in the last four years.
BERNSTEIN: “.. We revise up our #Bitcoin price expectation to $200K cycle-high by 2025E (vs. $150K earlier). Our base case estimates: Bitcoin at $200K by 2025E ..
.. $500K by 2029E
.. and $1Mn by 2033E.”Initiate $MSTR Outperform pic.twitter.com/V3LHUdCPD2
— Carl Quintanilla (@carlquintanilla) June 14, 2024
Leveraged Bet on Bitcoin
Bernstein’s coverage of MicroStrategy is seen as an investment in the company’s fundamentals, less so than a leveraged bet on Bitcoin. MicroStrategy is positioned uniquely against passive spot exchange-traded funds (ETFs) in the research by highlighting its active leveraged BTC approach.
Unprecedented demand from spot ETFs and the cryptocurrency’s restricted supply support Bernstein’s bullish prediction for its price. With this combo, Bitcoin may reach $500,000 by 2029, a big jump from their earlier projection of $150,000 for that year.
With its long-term convertible debt strategy, MicroStrategy hopes to reduce the possibility of having to sell its cryptocurrency assets while nevertheless taking advantage of possible BTC gains. To increase its Bitcoin ownership even more, the business has also suggested a $500 million debt issue of convertible notes.
Institutional Adoption Boost
Growing institutional use of Bitcoin adds to the positive long-term picture for the currency. Thanks in part to Spot Bitcoin, major asset managers like BlackRock and Fidelity today provide individual investors with simple access to Bitcoin.
CoinMarketCap data shows that the price of BTC at the moment of writing is about $66,269.93, down 1.12% over the previous day. It has been declining by 4.39% for the last week.
On the other hand, ETHNews just reported on remarks made by Paolo Ardoino, CEO of Tether, emphasizing Bitcoin’s special decentralized character among more than 14,000 cryptocurrencies.