According to analysts at Bernstein, Bitcoin (BTC) could potentially reach a value of nearly $200,000 by the end of next year. This upward revision from their previous target of $150,000 is attributed to the strong inflows into spot U.S. Bitcoin exchange-traded funds (ETFs) since their approval in January.
The analysts based their prediction on the assumption that spot Bitcoin ETFs may represent around 7% of the total circulating Bitcoin supply by the end of 2025. They believe that Bitcoin ETFs are on the verge of receiving approvals at major wirehouses and large private bank platforms in the third and fourth quarters of this year.
Currently, approximately 80% of spot Bitcoin ETF flows come from self-directed retail investors through broker platforms, while institutional integrations with wirehouses are still in the early stages. The ETFs have brought in around $15 billion of net new flows combined.
Bernstein analysts expect Bitcoin ETFs to account for around 7% of Bitcoin in circulation by 2025 and approximately 15% of Bitcoin supply by 2033.
The analysts also suggest that the recent Bitcoin halving event has initiated a new bull market cycle for BTC. They anticipate that new catalysts will emerge that will drive further demand for the cryptocurrency.
In addition to the capital flows into spot Bitcoin ETFs, there has been a significant influx of institutional funds into the pioneer cryptocurrency. MicroStrategy, the largest corporate BTC holder, continues to aggressively accumulate Bitcoin. The company recently acquired an additional 11,931 BTC for approximately $786.0 million. MicroStrategy now holds 226,331 BTC, representing approximately 1.15% of Bitcoin’s total global supply.
MicroStrategy has also announced plans to offer $800 million in convertible senior notes due 2032, with the proceeds being used to further increase its Bitcoin holdings. If the company continues its accumulation strategy over the next few years, Bernstein predicts that its holdings could grow to represent 1.5% of Bitcoin’s total circulating supply by the end of 2025.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and consider the risks involved before making any investment or trading decisions.