By Michael Scott
Investment firm Bernstein revised its March forecast to predict Bitcoin to surpass $200,000 by 2025. The revised estimates feature Michael Saylor’s Microstrategy prediction to outperform Bitcoin.
AllianceBernstein downplayed the recent dip in the crypto industry to predict Bitcoin rally to $200,000 by next year.
Bernstein Revises Prediction for Bitcoin to $200,000
The investment firm issued a revised prediction in the Thursday, June 13 research note. The firm attributed its bullish prediction to the constrained supply following the April halving amid huge Bitcoin demand from spot exchange-traded funds (ETFs).
The Bernstein analysts had previously indicated in March that the lead crypto by market value will hit $150,000 by the end of next year.
The upward revision on Thursday emerged when the crypto market was engulfed in headwinds, triggering million-dollar liquidation of crypto positions as Bitcoin plunged below $66,000. The struggle to replicate the March rally, when Bitcoin set an all-time price peak above $73,000, is apparent.
Bernstein analysts downplayed the plunge to anticipate a rebound in the token price. Besides, they anticipate the spot Bitcoin ETFs to amass $190 billion in assets under management (AUM) by 2025.
A review of CoinGlass data shows that spot Bitcoin ETFs have realized $53 billion in AUM since being approved by the US securities regulator in January.
MicroStrategy (MSTR) to Outperform
Bernstein’s bullish Bitcoin prediction featured a similar call for the US software firm MicroStrategy, the world’s largest corporate holder of the token. The analysts profiled MicroStrategy as deploying an active-leveraged bet on Bitcoin, unlike the passive approach in spot Bitcoin ETFs.
MicroStrategy revealed plans to sell additional debt to finance Bitcoin acquisitions the previous week. The firm plans to add to its 214,400 Bitcoin stash, whose value hovers around $14 billion.
Bernstein analysts acknowledged MicroStrategy’s distinct nature among the corporate holders of Bitcoin. The firm leverages capital markets to fund the acquisition of additional Bitcoin.
The Bernstein analysts consider that MicroStrategy’s long-term convertible debt approach yields sufficient time to reap from Bitcoin upside. The analysts consider MicroStrategy’s limited liquidation risk to Bitcoin as a reason for the outperform rating.
A reflection on MicroStrategy (MSTR) shares performance shows a 114% surge in the year-to-date (YTD) to exchange hands at $1,469.43 as per MarketWatch data. The MSTR rode on the Bitcoin rally in March to set a peak price of $2,000 before suffering a dip.
Bernstein analysts support the Bitcoin bullish prediction as replicating the historical four-year cycle that the asset follows. The firm noted that the cycle started afresh following the slashing of the Bitcoin rewards for completed blocks in April.
Besides halving, the spot Bitcoin ETFs drive the token’s demand as the fund issuers witness sustained inflows. Bernstein terms the inflow activity as setting the foundation for the imminent breakout phase in Bitcoin price.
Bernstein analysts predict the breakout phase could pave the way for the hype phase. The latter could occur when investors imagine that Bitcoin will hit unrealistic price targets due to mass interest.
Bernstein analysts argue that Bitcoin could likely test $500,000 by 2029. While a lull could emerge, the Bitcoin will rebound to top $1,000,000 by 2033.