Bernstein Analysts Predict Bitcoin Value to Soar to $200,000 by 2023 Alongside Surge in ETFs
Summary:
Bernstein analysts anticipate Bitcoin's (BTC) value to potentially hit $200,000 by 2023, following a surge in U.S. Bitcoin ETFs. This speculation predicts Bitcoin ETFs encompassing 7% of total Bitcoin supply by 2025. The analysts also note MicroStrategy's aggressive Bitcoin acquisition, which could represent 1.5% of the total circulating Bitcoin supply by 2025. Despite the speculative nature of cryptocurrency, every investment entails risks, and thorough research is advised.
Market analysts from Bernstein, a research and brokerage firm, foresee Bitcoin (BTC) potentially hitting close to $200,000 by the end of 2023. This speculation comes on the heels of a surge in flows into U.S. Bitcoin exchange-traded funds (ETFs) following their sanctioning in January. An earlier estimate had predicted a ceiling of $150,000 for the cryptocurrency. This increased forecast assumes that Bitcoin ETFs could account for 7% of the total Bitcoin in circulation by the end of 2025.
In a client note, Bernstein analysts Gautam Chhugani and Mahika Sapra inferred that Bitcoin ETFs are nearing major approval at large financial institutions. They consider institutional investments as a tactic for wider acceptance, indicating that institutional investors are assessing a net increase in their holdings.
According to the analysts, the lion's share, about 80%, of current Bitcoin ETF flows, originates from individual retail investors using brokerage platforms. Meanwhile, institutional associations are still at a preliminary stage.
The analysts highlighted that the combined inflow from the ETFs is around $15 billion. By 2025, they anticipate Bitcoin ETFs to constitute approximately 7% of Bitcoin in circulation, rising to around 15% by 2033. The ETF market value for Bitcoin is expected to rise to nearly $190B in 2025 and escalate to $3Tn by 2033.
Bernstein's analysts also claim that Bitcoin prices have initiated a fresh bull market cycle, triggered by the recent halving of Bitcoin. The analysts predict the emergence of new catalysts propelling demand for the cryptocurrency.
Alongside the flows into Bitcoin ETFs, the trailblazing digital currency has also witnessed a considerable infusion of institutional money. MicroStrategy, the corporate entity with the largest Bitcoin portfolio, is continuing its bold accumulation strategy. The ex-CEO, Michael Saylor, has disclosed the firm's purchase of an additional 11,931 Bitcoins, worth around $786.0 million.
The business intelligence entity is currently in possession of 226,331 Bitcoins, which make up roughly 1.15% of the total Bitcoin supply worldwide. MicroStrategy disclosed earlier its plans to offer $800 million of its convertible senior notes due in 2032. The proceeds will augment the company’s Bitcoin portfolio. If the firm continues accruing Bitcoin, Bernstein anticipates MicroStrategy's holdings could represent 1.5% of the total circulating Bitcoin supply by 2025's end.
This article is devoid of investment guidance or suggestions. Every investment or trading endeavor carries risks, hence readers are encouraged to conduct their own research prior to making a decision.
Published At
6/20/2024 7:01:20 PM
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