Investment firm Bernstein made a bold prediction in October, stating that Bitcoin (CRYPTO: BTC) would reach $150,000 by mid-2025. At that time, Bitcoin traded at around $35,000, and factors such as the introduction of new spot Bitcoin ETFs and the anticipated halving had not yet occurred.
Six months later, Bernstein reiterated its prediction of Bitcoin reaching $150,000, highlighting the growing appeal of investing in this cryptocurrency. Despite recent price dips, Bernstein’s confidence in Bitcoin remains strong.
The introduction of new spot Bitcoin ETFs has been a significant factor in Bitcoin’s favor, accumulating over $30 billion in assets under management since their launch in January. The iShares Bitcoin Trust (NASDAQ: IBIT) alone has attracted $17 billion and now holds over 200,000 bitcoins, representing more than 1% of all circulating Bitcoin.
While spot Bitcoin ETFs have seen success globally, U.S.-based ETFs are leading the way. Bernstein estimates that these U.S.-based ETFs could eventually account for 10% of all circulating Bitcoin, or about 2 million bitcoins.
Positive Impact of the Bitcoin ETFS
Despite the positive impact of the Bitcoin ETFs, there is still room for growth in this cycle. Investment advisors currently recommend a portfolio allocation of only 1% for Bitcoin, leaving potential for significant increases in investment as this figure rises.
Another catalyst for Bitcoin’s growth is the halving, which occurred on April 19. While the immediate impact of the halving was not as pronounced as expected, historical trends suggest that Bitcoin could see significant price increases in the future. Previous halving cycles in 2012, 2016, and 2020 have all led to new all-time highs for Bitcoin.
Cryptocurrency
Looking ahead, Bernstein expects Bitcoin to reach $90,000 by the end of 2024 before entering a major rally in 2025. With the potential for continued growth in Bitcoin ETF investments and the historical impact of halving cycles, Bitcoin appears to be a strong investment opportunity.
Despite potential risks such as geopolitical tensions or economic uncertainties, Bernstein’s forecast of Bitcoin reaching $150,000 by mid-2025 remains compelling. As the world continues to evolve, Bitcoin may prove to be an even more attractive investment option.
