Bernstein analysts Gautam Chhugani and Mahika Sapra shared their bitcoin price prediction on Friday while initiating coverage of the bitcoin-focused software intelligence firm Microstrategy (Nasdaq: MSTR). They believe BTC could reach $1 million by 2033 and forecast a cycle high of $200,000 by 2025, up from their previous estimate of $150,000.
“We revise up our bitcoin price expectation to $200K cycle-high by 2025 (vs. $150K earlier),” they detailed, adding:
Our base case estimates: bitcoin at $200K by 2025 … $500K by 2029 … and $1Mn by 2033.
The analysts largely attribute their bullish price forecast to the strong demand from spot bitcoin exchange-traded funds (ETFs). “We believe that U.S. regulated ETFs were a watershed moment for crypto, bringing in structural demand from traditional pools of capital,” they opined. They estimate that by 2025, bitcoin ETFs will hold about 7% of the BTC in circulation, increasing to 15% by 2033.
Moreover, the Bernstein analysts explained that the Bitcoin halving creates a unique scenario where the natural sell-pressure from bitcoin miners is reduced by half, or even more as they hold onto more bitcoin in anticipation. Simultaneously, new catalysts for bitcoin demand emerge, leading to exponential price increases. They further shared:
