Analysts at Bernstein Revise Bitcoin Price Targets, Focus on $200,000 and $1 Million

Investment analysts Gautam Chhugani and Mahika Sapra have revised their price targets for Bitcoin in their latest market report, predicting that BTC could hit $200,000 by 2025 and $1 million by 2033. This updated forecast reflects the increasing institutional demand for Bitcoin, with the analysts attributing the potential surge in price to factors such as the expected growth in Spot Bitcoin ETFs. The analysts anticipate that the funds under management for Bitcoin could reach $190 billion by 2025, significantly higher than the current $60 billion managed by funds issuers.

The analysts also pointed out that as Spot Bitcoin ETFs accumulate more of the crypto token for their ETFs, the supply of Bitcoin in circulation is likely to decrease. This reduction in supply, coupled with two Bitcoin halving events before 2033, is expected to support the analysts’ base case of BTC reaching $1 million. This supply and demand dynamic could contribute to the exponential growth in Bitcoin’s price over the next decade.

In addition to their analysis of Bitcoin, Chhugani and Sapra initiated coverage on MicroStrategy, giving the software company an outperform rating. They predict that MicroStrategy’s stock could rise to $2,890, representing a 95% increase from its current value of around $1,500. The analysts highlighted MicroStrategy’s commitment to becoming the world’s largest Bitcoin company, noting that the company has transformed into the largest holder of BTC since August 2020.

MicroStrategy currently owns 1.1% of Bitcoin’s total supply, with holdings valued at approximately $14.5 billion. The company recently announced plans to offer $500 million of Convertible Senior Notes, with a portion of the proceeds intended for acquiring additional Bitcoin. The company’s co-founder, Michael Saylor, has been instrumental in solidifying MicroStrategy’s position as a leading Bitcoin company, attracting significant capital for its Bitcoin acquisition strategy.

The analysts praised MicroStrategy’s long-term convertible debt strategy, which they believe allows the company to capitalize on Bitcoin’s potential upside while minimizing liquidation risk for its Bitcoin holdings. In terms of Bitcoin net asset value per share, MicroStrategy has experienced significant growth, outpacing the growth in Bitcoin’s spot price. The analysts see MicroStrategy as well-positioned to benefit from the growth in Bitcoin’s price, thanks to its strategic acquisition of the cryptocurrency.