Bernstein expresses confidence in its ambitious price prediction for Bitcoin, highlighting three factors that could propel BTC to the six-digit target by 2025 ending.
In a note to its clients, Bernstein analysts, led by Gautam Chhugani, emphasized that Bitcoin is fast approaching its 2025 target of $200,000, noting that the prediction no longer looks delusional following BTC’s recent surge to almost $100,000.
Bernstein Sets $200,000 Target for Bitcoin
It bears mentioning that Bernstein first issued the $200,000 prediction in June 2024. Ever since, the company has remained optimistic about the prediction, emphasizing that Bitcoin would achieve the target by 2025.
Earlier this month, specifically on the eve of the 2024 U.S. presidential election, the company asserted that Bitcoin’s price will surge to $200,000 by next year, irrespective of who wins the election.
3 Factors That Could Push Bitcoin to $200,000
Interestingly, Donald Trump’s victory boosted Bernstein’s confidence in the $200,000 prediction, thanks to his pro-crypto cabinet featuring prominent crypto enthusiasts like Pete Hegseth, Robert F. Kennedy Jr., and Elon Musk.
Amid growing enthusiasm for crypto potential under Trump’s administration, Bernstein highlighted three factors that could propel BTC’s price to $200,000 by next year.
Pro-Crypto Regulatory Promises
First, Bernstein analysts cited Trump’s pro-crypto promises, which aim to elevate the United States to become the crypto capital of the world.
The U.S. President-elect promised several initiatives for the crypto industry, including keeping anti-crypto lawmakers away from crypto and giving the CFTC more regulatory authority over the industry, drastically reducing the SEC’s regulation by enforcement approach against crypto businesses.
Notably, the analysts speculated that implementing these promises could bolster investors’ confidence in crypto, fueling a sustained rally in the prices of Bitcoin and other altcoins like Ethereum.
U.S. National Bitcoin Reserve
The analysts identified Trump’s pledge of a national Bitcoin reserve as another catalyst that could push BTC to $200,000. They stated that the political process of establishing a Bitcoin reserve in the U.S. has commenced with Trump’s victory. However, they suggested that the initiative might take a longer legislative process before coming to fruition.
In July, Senator Cynthia Lummis introduced the Bitcoin Act of 2024, proposing that the United States acquire 5% of Bitcoin’s supply over the next five years. The proposal suggests that the Secretary of State keep the assets for 20 years.
Reacting, Bernstein analysts stated that while retail, institutions, and corporate clients drive Bitcoin’s demand in the current cycle, they expect sovereign entities to take the lead by the next cycle.
Growing Institutional Demand
Furthermore, the brokerage company highlighted the growing institutional demand for Bitcoin as another factor that could propel it to the $200,000 mark. This is reflected in MicroStrategy’s Bitcoin accumulation spree, increased Bitcoin ETFs’ assets under management (AUM), and miners’ continuous hoarding of Bitcoin.
Analysts at Bernstein noted that these developments reduce the selling pressure on Bitcoin. They urged investors to hold BTC as the pro-crypto regulatory era has yet to price in.
With Bitcoin currently trading at $89,903, the world’s largest cryptocurrency must surge 122.46% to hit the $200,000 mark.
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