It is a good idea to get in touch with someone who can help you. analysis AllianceBernstein, the world’s largest investment company with $725 billion in assets under management, announced its new price target on Thursday. The firm predicts that Bitcoin will hit $1 million per coin by 2033. A new wave of US spot Bitcoin ETFs managed by asset managers like BlackRock Fidelity Franklin Templeton underscores this bullish outlook.
Bitcoins’ Path to $1 Million in 2033
The Bernstein analysts Gautam Chugani and Mahika Saprra outline a scenario in which they predict that the assets managed by Bitcoin ETFs will increase to $190 billion, up from $60 billion currently. According to the report, “We believe that the US regulated ETFs were the watershed moment for crypto that brought in structural demand from traditional pools of capital.”
The funds have already pumped in approximately $15 billion. net new flows into the market.
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This report predicts that Bitcoin ETFs could represent 7% of Bitcoins by 2025. By 2033 this number may rise to 15%. This dramatic increase in institutional interest Bitcoin will continue to rise in value as long as there is investment.
Bernstein’s analysis should include the impact of Bitcoin’s mechanics of supply, in particular the events of halving. Most recently, in April 2016, the reward to miners was reduced from 6.25 BTC (the current block reward) to 3.125 BTC. The daily supply has been effectively cut by half.
Chhugani, Sapra and other sources. “The halving presents a unique circumstance, where natural Bitcoin sell-pressure from miners declines by half (or even more, as they inventory more in anticipation), while new catalysts for bitcoin demand arise, leading to exponential price moves.”
BTC prices have historically risen after halves. Analysts use past cycles to provide context. In 2017, Bitcoin surged up to five times the marginal cost of its production. Then, in 2018, it bottomed out at 0.8. The 2021 cycle followed a similar pattern.
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In the cycle 2024-27, they predict a modest but significant increase of 1.5 times Bitcoin’s marginal costs of production. That translates to a mid-cycle peak of $200,000 predicted by mid-2025. Bernstein predicts that the Bitcoin price will reach a half-million US dollars in 2029 before it breaks the $1,000,000 mark four years after.
Outlook For MicroStrategy
Bernstein, in conjunction with its Bitcoin forecast, also began coverage of MicroStrategy, with an “outperform” rating. Bernstein targets a stock price of $2.890 by 2025. MicroStrategy is known for its BTC acquisition strategyNow holding approximately $14.5 Billion worth of cryptocurrency, 214 400 BTC (or 1.1%) or the circulating supply.
MicroStrategy’s aggressive acquisition of Bitcoin, funded through convertible notes—a form of long-term debt that converts into stock under specific conditions—demonstrates a robust investment strategy which the analysts believe offers “limited liquidation risk” Due to their already lucrative holdings, based on the current Bitcoin price. MicroStrategy expects its holdings to reach 1.5% of Bitcoin’s supply by 2025.
BTC is currently trading for $66,946.
Featured image created with DALL·E, chart from TradingView.com
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Source: www.newsbtc.com