Analysts at research and brokerage firm Bernstein believe Bitcoin (BTC) could reach nearly $200,000 by the end of next year following strong inflows into spot US Bitcoin exchange-traded funds (ETFs) since its approval in January. It was predicted that there would be. This forecast is an upward revision from the previous target of $150,000.
Analysts based this forecast on the assumption that spot Bitcoin ETFs could account for approximately 7% of the total Bitcoin circulating supply by the end of 2025.
“We believe Bitcoin ETFs are on track for approval by major financial institutions/large private banking platforms in the third quarter,” Bernstein analysts Gautam Chhugani and Mahika Sapra wrote in a note to clients.
“Institutional-based trading appears to be a ‘Trojan horse’ for adoption, and these investors are evaluating ‘net long’ positions.”
Analysts said that while nearly 80% of current spot Bitcoin ETF flows come from self-directed individual investors through brokerage platforms, institutional integration with financial institutions is still in its infancy.
“ETFs combined attracted approximately $15 billion in net new flows,” the analyst wrote. “We expect Bitcoin ETFs to represent approximately 7% of Bitcoin in circulation by 2025 and approximately 15% of Bitcoin supply by 2033.”
“We expect spot Bitcoin ETFs to reach $190 billion AuM by the 25-year market peak and $3 trillion by 2033.”
Bernstein analysts also suggest that BTC price has entered a new bull market cycle due to the recent Bitcoin halving event. They expect new catalysts to emerge that will drive demand for their assets.
“We believe Bitcoin is in a new bull cycle. A ‘halving’ occurs when the natural selling pressure of Bitcoin from miners is reduced by half (or more as they hold more inventory in anticipation), while at the same time a new catalyst for Bitcoin demand arises. “It presents a unique situation that leads to exponential price movements.”
Related: Bitcoin ETF legitimized the cryptocurrency industry for investors.
In addition to capital flows into spot Bitcoin ETFs, the pioneering cryptocurrency has seen significant institutional money pouring in.
MicroStrategy, the largest corporate BTC holder, continued its aggressive BTC accumulation strategy, acquiring an additional 11,931 BTC for approximately $786 million, according to founder and former CEO Michael Saylor.
The business intelligence company currently holds 226,331 BTC, equivalent to approximately 1.15% of the total global supply of Bitcoin.
MicroStrategy previously announced plans to offer a total of $800 million in convertible senior notes by 2032, the proceeds of which will increase its Bitcoin holdings.
Bernstein predicts that if Bitcoin continues to accumulate over the next few years, the company’s holdings could grow to account for 1.5% of the total circulating supply of Bitcoin by the end of 2025.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.