Key Points
- Bernstein Research analysts predict Bitcoin’s value could reach $200,000 by 2025.
- The forecast is based on factors such as institutional adoption and the evolving Bitcoin mining industry.
Bernstein Research analysts have recently issued a bullish forecast for Bitcoin (BTC), despite the cryptocurrency’s recent dip.
Matthew Sigel, Head of Digital Assets Research at VanEck, shared highlights from Bernstein’s report titled “From Coin to Compute: The Bitcoin Investing Guide”. The report predicts a potential peak of $200,000 for Bitcoin by the end of 2025.
Driving Factors Behind the Forecast
Analysts Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia identified the new institutional era as a key factor driving their price target. They believe that this could push Bitcoin to a high of $200,000 by the end of 2025.
Bitcoin has appreciated by approximately 110% over the past year according to CoinMarketCap. Its market capitalization stands at $1.3 trillion, making up over half of the total global crypto market cap of $2.32 trillion.
Institutional Adoption and Bitcoin Mining
Bernstein’s report emphasizes the significant role of institutional investors in Bitcoin’s growth. Ten global asset managers now hold over $60 billion in BTC through regulated exchange-traded funds (ETFs), marking a sharp rise from just $12 billion in September 2022.
The report also highlights the mining industry, which is expected to recover following the April 2024 halving event. Leading U.S. miners are consolidating their market share and emerging as key energy infrastructure players for AI data centers.
The report predicts that by 2027, more than 20% of U.S. Bitcoin mining power could be dedicated to AI, with smaller miners driving this shift.
Gautam Chhugani, one of the report’s lead analysts, referred to the $200,000 Bitcoin price prediction as a “conservative estimate,” citing the rising U.S. debt levels. Bitcoin’s limited supply makes it an increasingly attractive store of value.
Given these factors, the possibility of Bitcoin reaching $200,000 by 2025 seems increasingly plausible.