Bernstein analysts have updated their prediction for the future price of Bitcoin, estimating that the leading cryptocurrency could reach $1 million within the next decade.
Recently, the investment manager and financial advisory analysts updated their expectations on the growth potential of the bitcoin price.
Analysts indicated that their outlook on the rise of the market-leading cryptocurrency They point to a price of $200.000 per BTC by mid-2025 and $1.000.000 per unit of the cryptocurrency in 2033..
Previously, Bernstein analysts estimated that Bitcoin could reach an all-time high of $150.000 in the next bull cycle. However, they now believe that Bitcoin's upside potential is much higher, taking into account the unprecedented demand that the cryptocurrency's spot ETFs are experiencing and, of course, its limited supply in the market.
To date, Bitcoin spot ETFs have served as a catalyst for institutional demand for BTC, capturing around $15.000 billion in net new flows in less than 6 months.
“We believe that US-regulated ETFs were the watershed moment for cryptocurrencies that attracted structural demand from traditional capital pools,” Bernstein analysts said in the report.
Bitcoin ETFs will hold 15% of total supply by 2033
According to Bernstein's estimates, approximately 15% of the total Bitcoin supply, which is limited to 21 million units, will be managed by the cryptocurrency's spot ETFs.
Currently, data from the Bitcoin Treasuries web portal shows that all existing BTC exchange-traded funds manage around 5,12 % of the maximum supply of Bitcoin, with BlackRock's iShares Bitcoin Trust (IBIT) and Grayscale Investments' Grayscale Bitcoin Trust (GBTC) at the forefront of this management.
Bernstein analysts also pointed out in the report the limited supply of Bitcoin on the market, which was affected by the arrival of the network's fourth halving, which occurred last April. Before the halving, the daily production of Bitcoin was about 900 BTC on average. However, the halving reduced this amount by half, so that, at present, around 450 BTC are produced per day.
The limited supply of Bitcoin on the market and the growing demand from retail and institutional investors thus present a unique opportunity to reach new all-time highs that were previously unimaginable, analysts said.
Michael Saylor, symbol of the Bitcoin brand
But in addition to making the highest institutional bullish prediction on Bitcoin price yet, Bernstein analysts also praised the efforts of MicroStrategy CEO Michael Saylor, who have focused on turning the company into the largest institutional investor in Bitcoin and also into a company focused on developing the cryptocurrency's software and its scaling network, the Lightning Network.
Speaking about Saylor, one of the biggest tech evangelists, Bernstein said he has become synonymous with the Bitcoin brand, successfully positioning MicroStrategy as a leading Bitcoin company.
Thanks to this, the shares of the Bitcoin open source software development and business intelligence company, MicroStrategy, have received the Outperform rating, or outperform, by Bernstein. Over the past year, the company's stock, MSTR, has grown 440%, to more than $1.510 per share at the time of writing.
