Bernstein Analysts Predict Bitcoin Price to Reach $200K by 2025 Due to Spot BTC ETF Flows

Analysts at research and brokerage firm Bernstein have made a bold prediction regarding the price of Bitcoin (BTC), suggesting that the cryptocurrency could reach nearly $200,000 by the end of 2025. This forecast represents an upward revision from their previous target of $150,000, driven by strong inflows into spot U.S. Bitcoin exchange-traded funds (ETFs) since their approval in January.

The analysts at Bernstein based their prediction on the assumption that spot Bitcoin ETFs may represent around 7% of the total circulating Bitcoin supply by the end of 2025. They believe that Bitcoin ETFs are on the verge of approvals at major wirehouses and large private bank platforms in the third and fourth quarters of this year. This institutional basis trade is seen as a potential catalyst for adoption, with investors evaluating ‘net long’ positions.

Currently, nearly 80% of the spot Bitcoin ETF flows come from self-directed retail investors through broker platforms, while institutional integrations with wirehouses are still in their early stages. The analysts noted that approximately $15 billion of net new flows have been brought in by the ETFs combined, and they expect Bitcoin ETFs to represent around 7% of Bitcoin in circulation by 2025 and 15% of Bitcoin supply by 2033.

In addition to the influx of capital into spot Bitcoin ETFs, Bernstein analysts also attribute the recent surge in BTC price to a new bull market cycle triggered by the Bitcoin halving event. They anticipate that new catalysts will emerge to further drive demand for the cryptocurrency.

Furthermore, institutional funds have been pouring into Bitcoin, with MicroStrategy, the largest corporate BTC holder, continuing its aggressive accumulation strategy. The business intelligence firm recently acquired an additional 11,931 BTC for approximately $786.0 million, bringing their total holdings to 226,331 BTC, or approximately 1.15% of Bitcoin’s total global supply. MicroStrategy plans to offer $800 million in convertible senior notes due 2032 to further boost its Bitcoin holdings.

If MicroStrategy continues to accumulate Bitcoin over the next few years, Bernstein predicts that the company’s holdings could grow to 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, and readers are encouraged to conduct their own research before making any financial decisions.

Overall, the bullish outlook from Bernstein analysts reflects growing confidence in the future potential of Bitcoin, driven by increasing institutional adoption and the emergence of new catalysts for demand. As the cryptocurrency market continues to evolve, it will be interesting to see if these predictions come to fruition and how they may impact the broader financial landscape.