Bernstein predicted a five-fold increase in the price of bitcoin
Bernstein's analysts have made a bold prediction regarding the price of Bitcoin. They foresee a substantial increase, with Bitcoin's value expected to reach $150,000 by 2025. This projection is nearly five times higher than the current trading price of about $34,000 and more than double the previous all-time high, which was achieved in November 2021.
According to CNBC, the analytical firm Bernstein anticipates the approval of a Bitcoin ETF in the first quarter of 2024. They believe that this approval will trigger a surge in the value of the leading cryptocurrency, pushing it to $150,000 by 2025. This forecast stands in stark contrast to the current market price
Bernstein's principal analyst, Gautam Chhugani, asserts that the approval of a Bitcoin ETF is an inevitable and significant event. They predict that ETF funds will potentially accumulate up to 10% of the total Bitcoin supply, granting institutional market players quick and easy access to Bitcoin.
The approval of a spot Bitcoin ETF is highly significant due to the massive assets managed by various ETFs, including gold. Even a small portion of these assets could have a notable impact on the entire cryptocurrency market. With the approval of spot Bitcoin ETFs, the demand for Bitcoin is expected to surge, as buying shares in these funds requires the acquisition of actual Bitcoin, directly affecting its market value.
Furthermore, Bernstein points out the upcoming Bitcoin halving in April 2024, which will reduce the rewards for miners. This event is expected to weed out weaker participants in the industry, creating more opportunities for stronger market players. Bitcoin halving is a programmed event that reduces the number of new Bitcoins issued to miners, ensuring that the total supply never exceeds 21 million coins.
The potential approval of Bitcoin ETFs has already attracted significant interest from major institutional players. Many in the crypto community view the introduction of these investment products as a catalyst for a new bullish cycle in the cryptocurrency market. According to analysts at Bloomberg Intelligence, there is a high likelihood, around 90%, that the SEC will approve these ETFs in early January 2024.
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