“Bernstein’s bold prediction of Bitcoin reaching $150,000 by 2025 sparks excitement and curiosity, igniting discussions on the future potential of this groundbreaking cryptocurrency.”
The price of bitcoin could potentially reach $150,000 by 2025, according to a note from Bernstein. The firm is optimistic about the approval of a bitcoin exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC) in the first quarter of 2024. This bullish estimate is five times the current price of around $34,000 and more than double bitcoin’s all-time high of over $67,000.
If the ETF is approved, it is expected to shift up to 10% of bitcoin’s circulating supply towards ETFs. This approval would allow traditional investors to gain exposure to bitcoin directly from their investment portfolios. Currently, the only similar product is Grayscale’s Bitcoin Trust (GBTC), which holds around 3% of outstanding bitcoin.
Bernstein analyst Gautam Chhugani believes that a turn in the cycle is imminent with the approval of ETFs by top asset managers like BlackRock and Fidelity. Chhugani also initiated coverage on several bitcoin mining firms, predicting that the bitcoin “halving” in April 2024 will lead to gains for the surviving miners.
Last week, the price of bitcoin reached $35,000, its highest level since May 2022. Investors are hopeful for a green light on the ETF by the end of the year, especially after the SEC declined to appeal a key court ruling in Grayscale’s lawsuit against it. However, SEC Chair Gary Gensler’s stance on the crypto industry as being filled with “fraudsters and scam artists” raises uncertainty about the regulator’s stance on crypto ETFs.
Despite the potential for future gains, the crypto industry has faced challenges, including the SEC’s lawsuit against Binance for securities violations earlier this year and the bankruptcy filing of FTX last year. These recent struggles highlight the need for regulatory clarity and investor protection in the crypto market.