The international financial firm AllianceBernstein predicts that Bitcoin's price will reach $200,000 within the next year or so, notwithstanding the asset's recent decline.
The company highlighted two positive aspects for Bitcoin in a research note on Thursday (June 13): its "supply being constrained" and the "unprecedented Bitcoin demand" from spot ETFs. Prior to this, in March, Bernstein predicted that by the end of 2025, Bitcoin may reach $150,00.
The upward revision by Bernstein Headwinds in the cryptocurrency market on Thursday led to the liquidation of millions of dollars' worth of holdings as the price of Bitcoin dropped to $65,000. Regaining all-time highs has proven difficult for the asset since its March price peak of over $73,000.
Still, according to Bernstein analysts, by the end of 2025, spot Bitcoin ETFs should have $190 billion in assets under management (AUM). According to CoinGlass, the group of products that were certified in January have gathered $53 billion in AUM across almost a dozen offerings thus far.
The major corporate Bitcoin holder, MicroStrategy, an American software company, was the target of Bernstein's optimistic call for the cryptocurrency. In contrast to the passive character of spot Bitcoin ETFs, Bernstein emphasized the company as a "active-leveraged" wager on the cryptocurrency.
As of this writing on June 15, MicroStrategy's holding of 214,400 Bitcoin is valued around $14.3 billion, following its announcement earlier in the day that it will sell more debt to purchase Bitcoin. Analysts at Bernstein stated that MicroStrategy stands out as the only company using capital markets to exclusively purchase Bitcoin.
The company co-founded by Michael Saylor is rated as "outperform" by Bernstein's analysts, who commented, "We believe MSTR’s long-term convertible debt strategy allows it enough time to gain from Bitcoin upside, with limited liquidation risk to its Bitcoin on balance sheet."
MicroStrategy's stock has increased 116% year to date to $1,484. The company's stock price increased to $2,000 in March as the price of Bitcoin reached a new all-time high before declining.
According to Bernstein analysts, the asset has traditionally followed a four-year cycle, which can be linked to the anticipated increase in Bitcoin's price. The company claimed that when the rate at which new Bitcoin is mined was cut in half in April as part of the so-called halving, that cycle began afresh.
According to Bernstein, the ongoing inflows into spot Bitcoin ETFs are "laying the groundwork for the breakout phase" in the cryptocurrency's price. Analysts speculated that this could lead to a "hype phase," in which a wave of public interest causes "investors to imagine unrealistic price targets."
Beyond 2025, according to Bernstein analysts, the cryptocurrency might reach $500,000 by the end of 2029, then see a slowdown until hitting $1,000,000 by the end of 2033.
Source: Decrypt
0 Comments