Bernstein Predicts Bitcoin Will Reach $200,000 by 2025, Citing Economic Factors

Cryptonews Dante Raeburn October 23, 2024

Bernstein Predicts Bitcoin Will Reach $200,000 by 2025, Citing Economic Factors

Bernstein analysts project Bitcoin will reach $200,000 by 2025, a conservative estimate amid economic uncertainties. The firm emphasizes Bitcoin’s potential as a ‘store of value’ and suggests alternative investment opportunities in companies linked to the cryptocurrency. Other analysts, including those from Standard Chartered, support this price forecast, citing regulatory shifts and inflation as key drivers of Bitcoin’s valuation.

Analysts at Bernstein have set an ambitious price target of $200,000 for Bitcoin by the conclusion of 2025, an outlook they characterize as “conservative.” Gautam Chhugani, Bernstein’s lead analyst on crypto assets, expressed this prediction in a client memo dated October 23, asserting that Bitcoin is well-positioned to achieve this target. Mr. Chhugani emphasized Bitcoin’s role as a potential “store of value” amid rising economic uncertainties and a burgeoning national debt exceeding $35 trillion. He argued that, in light of persistent inflationary concerns, Bitcoin presents an appealing alternative to traditional financial assets such as gold. In addition to direct Bitcoin investment, Bernstein has recommended various companies for investors seeking indirect exposure to the cryptocurrency. MicroStrategy, noted for having the most substantial corporate Bitcoin reserves, alongside Robinhood, a trading platform expanding its cryptocurrency services, are two key suggestions. Furthermore, U.S.-listed Bitcoin mining companies like Riot Platforms and CleanSpark, which are increasing their energy resource capabilities, were highlighted as attractive investment opportunities. Core Scientific, another significant player in this sector, has diversified into artificial intelligence while maintaining robust Bitcoin mining operations through a strong energy infrastructure. The projected price of $200,000 by 2025 aligns with the viewpoints of other analysts. Sminston With, a recognized crypto analyst, also predicts that Bitcoin may surpass this threshold, referencing a Decay Channel model that suggests potential prices between $199,106 and $207,623 by early 2026. He suggested that the upper bounds of this analysis indicate a strong bullish trend for Bitcoin’s trajectory. Moreover, Geoff Kendrick, head of digital asset research at Standard Chartered, has corroborated this outlook, anticipating a $200,000 Bitcoin valuation by 2025, irrespective of the results of the upcoming U.S. presidential elections. According to Mr. Kendrick, contributing factors include prospective regulatory shifts, inflationary pressures, and a surge in investments into spot Bitcoin exchange-traded funds (ETFs). He specifically noted the potential repeal of Staff Accounting Bulletin 121—which restricts banks’ possession of digital assets—as a significant driver of this anticipated growth, contingent upon the election results. In conclusion, both Bernstein and other financial analysts foresee a substantial upward trajectory for Bitcoin, with expectations centered on its increased acceptance as a financial asset amid ongoing economic challenges.

The article discusses Bernstein’s optimistic forecast for Bitcoin, projecting its price to reach $200,000 by 2025—an estimate described as conservative by their lead cryptocurrency analyst, Gautam Chhugani. The backdrop includes significant factors such as U.S. inflation, rising national debt, and Bitcoin’s appeal as a hedge against traditional investments like gold. The article also highlights the investments in firms connected to Bitcoin and reflects a broader consensus among analysts regarding Bitcoin’s future valuation, underlining regulatory changes and market dynamics as key influences on its price.

In summary, Bernstein’s prediction of Bitcoin reaching $200,000 by the end of 2025 is supported by a favorable economic environment and the cryptocurrency’s growing role as an alternative investment. The insights shared by analysts across the financial sector indicate a robust bullish sentiment towards Bitcoin’s long-term potential, despite external economic challenges. Investors may find opportunities in suggested companies that have exposure to Bitcoin, reaffirming the cryptocurrency’s significance in modern finance.

Original Source: thecryptobasic.com