Bernstein raises Bitcoin price forecast to $200,000 to $1 million, triggering heated market discussion

Bernstein analysts Gautam Chhugani and Mahika Sapra made significant changes to Bitcoin price targets in their latest market report, a move that also attracted widespread attention from MicroStrategy.

The two analysts not only revised their previous predictions, but also detailed several factors that could cause Bitcoin’s price to surge.

Prediction that Bitcoin price will rise sharply

In the report, Chhugani and Sapra predict that Bitcoin will reach a cyclical high of $200,000 in 2025 and a staggering $1 million in 2033.

Compared to Bernstein’s previous prediction of a Bitcoin price of $150,000 in 2025, this new target shows great confidence in Bitcoin’s future potential. However, these analysts have now revised their targets and hinted that institutional demand for BTC is one of the reasons why they believe the flagship cryptocurrency can reach such heights.

Bernstein expects spot Bitcoin ETFs to continue to see strong demand, predicting that Bitcoin under management could surge to $190 billion by 2025, well above the $60 billion currently managed by fund issuers.

Analysts believe that as these ETFs accumulate large amounts of Bitcoin for their respective funds, the number of Bitcoins circulating in the market will decrease significantly, putting upward pressure on prices.

In other words, analysts believe that as spot Bitcoin ETFs continue to accumulate large amounts of Bitcoin to meet the needs of their funds, the number of Bitcoins available in the market will significantly decrease. In addition, two Bitcoin halving events will occur before 2033, which will also cause the Bitcoin supply to miners to further decrease. These factors combine to support their prediction that the price of Bitcoin is expected to reach $1 million.

MicroStrategy will benefit significantly from the growth of Bitcoin

Bernstein analysts initiated coverage on MicroStrategy with an outperform rating and predicted that its shares could rise to $2,890, approximately 95% higher than its current price, thanks to BTC exposure.

MicroStrategy is committed to becoming the world’s largest Bitcoin company, and so far that effort has paid off. Chhugani and Sapra said that since August 2020 (when it began accumulating BTC), MicroStrategy has transformed from a small software company. One of the largest Bitcoin holding companies.

As of now, MicroStrategy holds 1.1% of the total Bitcoin supply, worth approximately $14.5 billion. The company recently announced plans to issue $500 million worth of convertible senior bonds, and part of the proceeds from the proposed sale will be used to purchase more bitcoins, a move that heralds a further increase in the company's bitcoin holdings.

Bernstein said MicroStrategy co-founder Michael Saylor has become an iconic figure in the Bitcoin space, and his influence has greatly increased the company's visibility. As a leader in Bitcoin holdings, MicroStrategy has successfully attracted significant capital, both debt and equity, to execute its aggressive Bitcoin buying strategy.

Bernstein also mentioned that MicroStrategy’s Bitcoin net asset value (NAV) per share has achieved a nearly four-fold increase in U.S. dollars, an increase that far exceeds the 2.4-fold increase in Bitcoin’s spot price during the same period.

Conclusion

Bernstein analysts are optimistic about Bitcoin’s long-term prospects and believe MicroStrategy’s long-term convertible debt strategy will allow it to fully capitalize on Bitcoin’s upside potential while keeping the risk of Bitcoin liquidation on its balance sheet minimized.

As the Bitcoin market continues to grow and mature, the strategies of MicroStrategy and similar companies may become a focus for investors.

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