Bernstein analysts predicted bitcoin price growth to $150 thousand by 2025
The analysts’ forecast is almost five times higher than the price of $34 thousand, at which bitcoin is currently traded, and more than twice the historical maximum price of the asset, set in November 2021
Analytical company Bernstein expects the approval of bitcoin-ETF in the first quarter of 2024 and growth in the value of the first cryptocurrency to $150 thousand by 2025, writes CNBC with reference to the presentation of the company.
This forecast is almost five times higher than the price at which bitcoin is traded at the moment (about $34 thousand). According to analysts, ETF funds will be able to accumulate up to 10% of the entire supply of digital gold, as the approval of ETFs will allow institutional market participants to get quick access to bitcoin.
“You may not like Bitcoin as much as we do, but an unbiased look at it as a commodity suggests the cycle is turning,” Bernstein principal analyst Gautam Chhugani wrote. In his view, the imminent approval of a bitcoin ETF is an inevitable event.
What makes a spot Bitcoin ETF so important
Various ETFs, including gold, have trillions of dollars in assets under management. In the cryptocurrency community, it is generally accepted that even a small percentage of this capital can potentially impact the global crypto market. If spot bitcoin ETFs are approved, demand for the cryptocurrency will increase: buying shares of the funds implies the delivery of bitcoin as an underlying asset, that is, its direct purchase in the market, affecting the rate.
Bernstein also recalled the bitcoin halving in April 2024, which will halve the reward to miners for mining blocks. Analysts believe that this event will “wash out” weak players from the industry, opening more opportunities for strong market participants.
Halving is a planned reduction in the number of newly issued bitcoins (BTC) that are created and distributed to miners who perform verification and validation of transactions on the web. This is embedded in Bitcoins program code to ensure that the total number of coins on the Network never exceeds 21 million units.
Several major institutional players have already applied for bitcoin-ETFs. The launch of these investment products is considered in the crypto community as a catalyst for a new bull cycle in the market. According to Bloomberg Intelligence analysts, the probability that the SEC will approve the ETF in early January 2024 is estimated at 90%.
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