Bitcoin's price has taken a hit recently, but analysts at Bernstein are still optimistic about its future. They believe that the leading cryptocurrency could reach $200,000 by the end of 2025. This prediction is described as "conservative."
In their report, analysts Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia state, “With accelerating institutional adoption, we expect Bitcoin to triple from here to attain a cycle-high price of $200,000 by 2025 end.”
Right now, Bitcoin is trading just under $65,750, down nearly 3% over the past week. It briefly crossed $69,000 over the weekend, marking its highest price in almost three months. The all-time high was $73,737 in March.
Previously, Bernstein predicted Bitcoin could hit $150,000 in 2025, fueled by strong demand for newly approved spot Bitcoin exchange-traded funds (ETFs) in the U.S. They argue that this demand will drive the price higher.
These ETFs allow investors to buy Bitcoin through their brokerage accounts, and they’ve been quite successful. Major institutions like Morgan Stanley have used these products to safely gain exposure to Bitcoin. As of last week, funds managed by firms like BlackRock and Fidelity topped $20 billion in total inflows since their approval in January.
The report also highlights that American Bitcoin mining companies and software firm MicroStrategy will likely continue to thrive. MicroStrategy, which started adding Bitcoin to its balance sheet in 2020, holds over $16 billion worth of Bitcoin, making it the largest corporate treasury reserve holder of the asset.
In another update, Bitcoin seems to be entering a stabilization phase. Analysts note that traders are shifting toward an accumulation period. Currently, Bitcoin is trading at $66,300, down 0.7%, but it has maintained a 7% gain over the past two weeks. Ethereum is down 2% at $2,570, although it has risen 5.5% in the same period.
In a separate discussion, SEC Chair Gary Gensler shared insights from GameStop’s short squeeze in 2021. He emphasized the need to modernize equity markets, particularly by adopting shorter settlement times. This retail-driven movement caused GameStop's stock price to surge nearly four years ago during the "meme stock" craze.
Lastly, billionaire investor Paul Tudor Jones has expressed concerns about the U.S. economy and its growing debt. He believes in hedging against inflation by investing in commodities, including Bitcoin. “I think all roads lead to inflation,” he said. He’s long on both gold and Bitcoin, as well as commodities, which he feels are significantly underrepresented in investment portfolios. He also noted that many young investors look to the Nasdaq for inflation hedges, which has performed well.