Bernstein analysts have raised their Bitcoin (BTC) price prediction to nearly $200,000 by the end of next year. This increase comes after the approval of spot U.S. Bitcoin exchange-traded funds (ETFs) in January, which have seen strong inflows. Previously, the target was set at $150,000.
The analysts believe that by the end of 2025, spot Bitcoin ETFs could account for about 7% of the total circulating Bitcoin supply. They anticipate further approvals for Bitcoin ETFs on major wirehouses and large private bank platforms in the third and fourth quarters of this year.
Currently, the majority of spot Bitcoin ETF flows come from self-directed retail investors through broker platforms, with institutional integrations still in their early stages. The ETFs have brought in approximately $15 billion in net new flows combined.
According to Bernstein, Bitcoin ETFs could represent around 7% of Bitcoin in circulation by 2025 and about 15% by 2033. The analysts also believe that the recent Bitcoin halving event has triggered a new bull market cycle for the cryptocurrency, with new catalysts expected to drive demand.
In addition to the influx of capital into spot Bitcoin ETFs, institutional funds have been pouring into Bitcoin. MicroStrategy, the largest corporate BTC holder, recently purchased an additional 11,931 BTC for around $786.0 million. The company now holds 226,331 BTC, equivalent to about 1.15% of Bitcoin’s total global supply.
MicroStrategy has announced plans to offer $800 million in convertible senior notes due 2032, with the proceeds aimed at increasing its Bitcoin holdings. If the company continues its accumulation over the next few years, Bernstein predicts that its holdings could represent 1.5% of Bitcoin’s total circulating supply by the end of 2025.
It is important to note that this article does not provide investment advice. All investment and trading decisions involve risks, and readers are encouraged to conduct their own research before making any decisions.