Analysts at Bernstein predict that the price of bitcoin could climb to as high as $200,000 by the end of 2025. This optimistic outlook is supported by the expected approval of spot Bitcoin ETFs, growing interest from retail and institutional investors, and the continued accumulation of BTC by major players such as MicroStrategy. What are the key factors and trends that could support this prediction?
Spot Bitcoin ETF Expectations
According to the latest forecast by Bernstein analysts, the value of bitcoin could climb to as high as $200,000 by the end of next year. A key driver of this growth is the expectation that spot bitcoin ETFs will gain approval on major financial platforms later this year. Bernstein predicts that the share of these ETFs in the total amount of bitcoin circulating could reach around 7% by the end of 2025.
The majority of capital inflows into spot bitcoin ETFs, more than 80%, come from retail investors through brokerage platforms. Institutional investors have been slower to enter these funds so far, but their participation could grow significantly in the coming years. By 2033, these funds could account for as much as 15% of the total bitcoin supply, which would significantly boost the bitcoin price.
Institutional Interest and Growth Factors
Another significant factor contributing to the bullish forecast is the increased interest in bitcoin by institutional funds. MicroStrategy, known for its aggressive bitcoin buying, recently purchased an additional 11,931 BTC for approximately $786 million, increasing its total holdings to 226,331 BTC. With this move, MicroStrategy now owns about 1.15% of the total amount of bitcoin in circulation.
Bernstein analysts estimate that if MicroStrategy continues with this strategy, its share of the total amount of bitcoin could grow to 1.5% by the end of 2025. This continued accumulation by institutional players, coupled with the positive impact of the recent halving, which reduced rewards to miners, suggests that bitcoin may be on the cusp of a new bull cycle that could drive the price of BTC significantly higher.
read also: Bitcoin Halving: a detailed guide to a key event
