Analysts at Bernstein, a leading research and brokerage firm, have reportedly described their Bitcoin price prediction of $200,000 by the end of 2025 as “conservative.” They urged those skeptical about cryptocurrency to reconsider its potential, particularly given the rising U.S. debt levels.
Bernstein, formally known as AllianceBernstein, is a global investment management firm renowned for its expertise in asset management and sell-side research. The firm serves a diverse range of clients, including institutional investors, high-net-worth individuals, and retail clients. Bernstein is well-regarded for its active management approach, offering tailored investment solutions across various asset classes, including equities, fixed income, alternatives, and multi-asset strategies.
In addition to its asset management services, Bernstein is also recognized for its top-tier research division, Sanford C. Bernstein, which provides comprehensive equity research and analysis. This division is highly respected within the financial industry for its independent and in-depth market insights, often shaping the strategies of institutional investors.
According to a report by James Hunt for The Block, Gautam Chhugani, who leads Bernstein’s digital assets division, sent a note to clients on Wednesday stating, “Bitcoin is on track to reach $200,000 by the end of this cycle, projected for 2025. We consider this a conservative estimate.”
The forecast follows the release of Bernstein’s “Bitcoin Blackbook,” which is aimed at guiding institutional investors interested in the cryptocurrency. Chhugani pointed out that, in a world where the U.S. national debt now stands at $35 trillion and inflationary risks persist, Bitcoin’s scarcity as a digital asset offers strong appeal as a “store of value.” He added that those who view gold as a solid investment should find Bitcoin an even more compelling option.
For investors looking for indirect exposure to Bitcoin, Chhugani suggested considering companies like MicroStrategy, which holds the largest amount of Bitcoin on its corporate balance sheet, and Robinhood, which is growing its crypto offerings.
Chhugani also pointed to the potential of U.S.-based firms such as Riot Platforms and CleanSpark, which are amassing significant energy capacity for Bitcoin mining. He noted that Core Scientific is leveraging its resources for both AI hosting services and Bitcoin mining, tapping into the growing demand for AI infrastructure.
At the time of writing, Bitcoin is trading for $66,349, down 0.7% in the past 24-hour period. The BTC price is down 9.5% from its all-time high of around 10% from an all-time high of roughly $73,737 set on 14 March 2024, but up 58.31% in the year-to-date period.
On October 16, Real Vision’s Chief Crypto Analyst Jamie Coutts presented a bullish outlook for Bitcoin, citing the increasing backing from institutional investors. Coutts highlighted a notable change in asset allocation preferences, driven by BlackRock CEO Larry Fink’s public support for Bitcoin. He pointed out that BlackRock’s Aladdin platform, widely used by sovereign wealth funds and major asset managers for portfolio modeling, now integrates Bitcoin seamlessly via its ETF. This, Coutts argued, has cleared the way for Bitcoin’s price to rise significantly. He predicted that even a small reallocation of institutional investments from traditional assets like sovereign bonds to Bitcoin could see BTC surpass $500,000 by the end of the decade.
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