Bitcoin Predicted to Reach $200K by 2025: Bernstein Report
According to Bernstein Research, Bitcoin’s price may escalate to $200,000 by the end of 2025, fueled by institutional investments and industry consolidation. The report highlights that major asset managers now control approximately $60 billion in Bitcoin via ETFs, a significant increase since 2022. Influenced by rising geopolitical tensions and inflation concerns, investors are increasingly drawn to both Bitcoin and gold. Bitcoin miners are expected to recover from post-halving challenges, capitalizing on new revenue opportunities in the AI sector.
According to a report by Bernstein Research published on October 22, Bitcoin’s price, currently at $67,299, may surge to $200,000 by the end of 2025 as the cryptocurrency transitions into what the report describes as a “new institutional era.” Bernstein’s extensive “Black Book” delves into the ongoing consolidation within the Bitcoin mining sector, as highlighted by Matthew Sigel, head of digital asset research at VanEck, on October 23. The report notes that ten prominent global asset managers now collectively hold approximately $60 billion in Bitcoin, wrapped as regulated exchange-traded funds (ETFs), a significant increase from $12 billion reported in September 2022. Bernstein anticipates that by the end of 2024, Wall Street will surpass Satoshi Nakamoto as the largest Bitcoin holder. Bitcoin has seen remarkable success in the ETF arena this year, claiming six of the top ten most successful launches in 2024, as noted by Nate Geraci, President of The ETF Store. Institutional analysts from firms such as Bernstein, JP Morgan, and hedge fund veteran Paul Tudor Jones are growing increasingly optimistic about Bitcoin as the upcoming United States presidential election approaches. Investors are gravitating towards gold and Bitcoin in what JPMorgan has referred to as a “debasement trade,” motivated by concerns over potential economic instability amid escalating geopolitical tensions. On October 3, JPMorgan indicated that these conditions would likely strengthen the demand for both gold and Bitcoin. The report cited rising geopolitical issues and uncertainties about inflation, coupled with persistently high government deficits in major economies, as contributing factors to this trend. On October 22, Mr. Jones emphasized his bullish stance on Bitcoin as well as other commodities, declaring that “all roads lead to inflation” following the US presidential election. He expressed, “I probably have some basket of gold, Bitcoin, commodities and Nasdaq [technology stocks], and I would own zero fixed income,” during an appearance on CNBC’s Squawk Box. Furthermore, Bernstein posited that Bitcoin miners are expected to rebound from a mid-2024 post-halving slump, as they benefit from rising energy demands linked to artificial intelligence (AI). The halving event in April, which saw mining rewards decrease from 6.25 BTC to 3.125 BTC per block, will prompt miners like Riot, ClearSpark, and Marathon to dominate the mining landscape. According to Nick Hansen, CEO of Luxor, miners might generate revenue of $2 to $3 per kilowatt-hour (kWh) from AI, compared to merely $0.15 to $0.20 from Bitcoin mining. It is noteworthy that some Bitcoin mining firms, including Core Scientific, Hive Digital Technologies, and Hut 8, are diversifying by adopting AI as a secondary income source.
The topic at hand focuses on the evolving landscape of Bitcoin and its market trajectory, particularly as influenced by institutional investment and the cryptocurrency’s integration into regulated financial products like ETFs. Bernstein Research’s analysis sheds light on the increasing consolidation among Bitcoin miners and the growing institutional interest in Bitcoin, particularly from major asset management firms. Amid fluctuating geopolitical dynamics and inflation concerns, Bitcoin is viewed as a hedge against economic uncertainty, aligning it closely with gold in what analysts are identifying as a ‘debasement trade’ amidst rising investor anxiety.
In summary, Bernstein Research anticipates that Bitcoin could reach up to $200,000 by the end of 2025 as institutional investment flourishes and the cryptocurrency sector continues to consolidate. The report underscores a substantial increase in Bitcoin held by asset managers through regulated ETFs, reflecting a growing confidence in Bitcoin’s value as a strategic asset in the face of economic uncertainties. Notably, Bitcoin miners are also poised for recovery, leveraging the burgeoning demand for AI capabilities linked to their operations.
Original Source: cointelegraph.com
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