Major Wall Street firm Bernstein has made a bold prediction for the long-term price of Bitcoin, forecasting that the cryptocurrency could reach $1 million by the year 2033. This optimistic outlook was revealed in a recent report by Bernstein analysts, who have been known for their positive stance on Bitcoin’s potential.
The report also included a shorter-term prediction, stating that Bitcoin’s price could hit $200,000 by the end of 2025. This represents a significant increase from their previous price target of $150,000 for the same time period. The analysts at Bernstein attribute this bullish forecast to the unprecedented demand from spot Bitcoin ETFs and the expected constrained future supply of the cryptocurrency.
One of the key factors driving this optimistic outlook is the influence of Michael Saylor’s MicroStrategy, which has become synonymous with Bitcoin and positioned itself as a leading Bitcoin company. Bernstein analysts noted that MicroStrategy has attracted significant capital, both debt and equity, for an active Bitcoin acquisition strategy. They highlighted the company’s success in leveraging Bitcoin as an asset and producing higher returns per equity share compared to passive ETFs.
In addition to raising their price target for Bitcoin, Bernstein also set a target of $2,890 for MicroStrategy shares, nearly double the current price. The firm sees MicroStrategy maintaining its first-mover advantage in the Bitcoin space and remaining a key player as institutional interest in Bitcoin continues to grow.
The bullish long-term outlook for Bitcoin comes at a time when major asset managers like BlackRock and Fidelity are offering Bitcoin investment products, leading to increased inflows into regulated vehicles and driving up the price of the cryptocurrency. Bernstein analysts believe that firms like MicroStrategy still have significant room to grow their Bitcoin holdings as adoption of the digital asset is still in its early stages.
Overall, Bernstein’s optimistic forecast for Bitcoin’s price reflects a growing confidence in the cryptocurrency’s potential as a valuable asset class, with institutions increasingly recognizing its investment opportunities. As the market continues to evolve, it will be interesting to see if Bitcoin can indeed reach the $1 million mark by 2033 as predicted by Bernstein.