Bernstein Analysts Revise Bitcoin Target, $200,000 And $1 Million Become Main Focus

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As an experienced financial analyst, I find Bernstein’s latest market report on Bitcoin and MicroStrategy intriguing. The prediction of Bitcoin reaching $200,000 by 2025 and $1 million by 2033 is ambitious but not implausible given the increasing institutional demand for the crypto token. This demand, coupled with the reduction in circulating supply due to Spot Bitcoin ETFs accumulation and upcoming Bitcoin halvings, could indeed result in exponential price growth.

In their recent market analysis, Bernstein’s Gautam Chhugani and Mahika Sapra updated their Bitcoin price predictions and began covering MicroStrategy. They identified certain factors that could potentially lead to a significant increase in Bitcoin’s value.

Bitcoin To Hit $200,000 And Then $1 Million

Chhugani and Sapra forecasted in their report that Bitcoin’s price could peak at $200,000 by 2025 and surpass $1 million by 2033. Previously, Bernstein had projected that Bitcoin would hit $150,000 by 2025. These analysts have since adjusted their predictions, attributing the potential for such high prices to the growing institutional interest in Bitcoin.

A leading research organization anticipates persistent high demand for Spot Bitcoin Exchange-Traded Funds (ETFs). By 2025, it’s projected that the amount of Bitcoin these ETFs manage could swell to an impressive $190 billion – a substantial rise from the current $60 billion held by issuers.

As a researcher studying Bitcoin’s price dynamics, I can explain it this way: Analysts anticipate that the price of Bitcoin will eventually yield to the fundamental forces of supply and demand. The reason being, the total circulating supply of Bitcoin is predicted to decrease substantially due to the increasing accumulation of Bitcoin by Spot Bitcoin Exchange-Traded Funds (ETFs). Furthermore, there are two more Bitcoin halvings scheduled before 2033, which will result in a reduction in the mining community’s supply. This reduction in supply could potentially fuel the demand and support the analysts’ hypothesis that Bitcoin may reach $1 million.

MicroStrategy To Benefit From BTC’s Growth

The analysts from Bernstein have begun following MicroStrategy and have given it an optimistic outlook with a “buy” recommendation. They believe that the tech firm’s share price could reach as high as $2,890 due to its substantial Bitcoin holdings. This projected price is approximately 95% higher than MicroStrategy’s current market value of around $1,500.

The research firm pointed out that MicroStrategy has made a significant commitment to establishing itself as the world’s leading Bitcoin company. This strategic move has already proved beneficial, as Chhugani and Sapra have remarked that MicroStrategy has dramatically shifted its identity from being a modest software company to holding the most Bitcoin among all companies, following its acquisition of large quantities of Bitcoin starting in August 2020.

MicroStrategy currently holds approximately 1.1% of the entire Bitcoin supply, valued at roughly $14.5 billion. The corporation’s Bitcoin holdings are poised for expansion in the near future. They have declared their intention to issue $500 million worth of Convertible Senior Notes as part of a new financing plan. A portion of these funds is intended for purchasing more Bitcoin.

Michael Saylor, the co-founder of MicroStrategy, is closely associated with the Bitcoin brand due to the company’s prominent position as a leader in the industry. This reputation has brought significant capital, both debt and equity, for an aggressive Bitcoin acquisition strategy. In monetary terms, Bernstein pointed out that MicroStrategy’s Bitcoin net asset value (NAV) per share has almost quadrupled, surpassing the 2.4x increase in the actual price of Bitcoin.

“According to Chhugani and Sapra, they hold faith that MSTR’s long-term approach to convertible debt enables it to capitalize on potential Bitcoin price increases, while bearing minimal risk of having to sell its Bitcoin holdings.”

Bernstein Analysts Revise Bitcoin Target, $200,000 And $1 Million Become Main Focus

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2024-06-16 02:10