“The potential approval of a Bitcoin ETF could serve as a game-changer for the cryptocurrency market, propelling Bitcoin’s value to unprecedented heights, with projections soaring as high as $150,000, according to experts at Bernstein.”
Nashville-based asset manager AllianceBernstein Holding L.P., also known as Bernstein, has joined the growing list of firms predicting a significant rally for Bitcoin in the near future. Bernstein analyst Gautam Chhugani believes that Bitcoin could reach $150,000 by 2025. This optimistic price projection is based on the expectation that the Securities and Exchange Commission (SEC) will approve a spot Bitcoin exchange-traded fund (ETF) by the first quarter of 2024.
Chhugani argues that the approval of ETFs by top asset managers like BlackRock and Fidelity is imminent, and this would allow conventional investors to gain exposure to Bitcoin directly. Bernstein also anticipates that up to 10% of Bitcoin’s circulating supply will shift towards ETFs once they are approved.
In addition to the potential approval of a spot BTC ETF, Chhugani points to the Bitcoin halving, expected in April 2024, as a development that could boost BTC price. He believes that once the newly minted supply is cut in half, “losing miners” will be washed out, paving the way for significant gains for the survivors.
Another factor contributing to Bitcoin’s recent strong performance and potential price increase is its emergence as a safe haven asset. Mohamed El-Erian, chief economic advisor at Allianz, suggests that global investors have lost confidence in U.S. Treasury bonds as a safe asset, leading them to consider Bitcoin as a reliable store of value. El-Erian notes that investors seeking safety in other assets have contributed to a rise in Bitcoin’s stature.
It is important to note that the views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy, but neither Kitco Metals Inc. nor the author can guarantee its accuracy. This article is for informational purposes only and does not constitute a solicitation to make any exchange in commodities, securities, or other financial instruments.
Overall, Bernstein’s prediction of a $150,000 Bitcoin price by 2025 aligns with the growing bullish sentiment around the cryptocurrency. As the market awaits the potential approval of a spot BTC ETF and the Bitcoin halving, it will be interesting to see if these factors indeed contribute to a significant rally in the coming years.