Bernstein Doubles Down on Bitcoin Price Projections, Targeting $1M by 2033

Bernstein analysts also revised their predictions for the current cycle and now project the flagship crypto to hit $200,000 by the end of 2025

Investment firm Bernstein has raised its long-term price projection for Bitcoin to an impressive $1 million by 2033, driven by increasing demand and a limited supply of the flagship crypto.

The firm's analysts also revised their predictions for the current cycle, now expecting Bitcoin to hit $200,000 by the end of 2025, up from their earlier estimate of $150,000. Bernstein also anticipates the crypto to reach $500,000 by 2029.

According to Bernstein, this growth is expected to be fueled by increasing demand for Bitcoin through various channels, notably the newly launched ETFs and the trend of corporations adding Bitcoin to their treasuries. The firm highlights that this rising demand, coupled with Bitcoin's shrinking supply, points to remarkable potential for growth.

Despite Bitcoin's recent struggle to maintain its position above $67,000, with prices slipping to around $66,850, Bernstein's optimistic forecast highlights the long-term potential within the crypto market.

The analysts also note that the broader economic environment, including easing US inflation and shifting political attitudes towards cryptocurrencies, supports a positive outlook for Bitcoin and MicroStrategy.

As part of its bullish outlook, Bernstein also initiated coverage of MicroStrategy, assigning it an outperform rating with a price target of $2,890. The Virginia-based company, known for its significant Bitcoin holdings, closed at approximately $1,484 on June 14.

Having undergone a remarkable transformation over the past four years, MicroStrategy, which holds about 214,400 bitcoins (around $14.5 billion), has shifted its focus from being a small software firm to a major player in the crypto market. The company began allocating its capital to BTC in 2020, and its founder and chairman, Michael Saylor, has emerged as a prominent advocate for the digital currency.

Highlighting Saylor’s strategic approach in positioning MicroStrategy as a leading Bitcoin enterprise, Bernstein analysts Gautam Chhugani and Mahika Sapra stated, “Michael Saylor has become synonymous with brand Bitcoin, and MicroStrategy has positioned itself as an active leveraged Bitcoin strategy versus passive spot ETFs.”

According to the firm, this active strategy has resulted in a higher Bitcoin per equity share compared to passive approaches.

As part of its long-term financial strategy, MicroStrategy has employed convertible debt, which enables the company to capitalize on Bitcoin's potential upside while minimizing liquidation risks.

In recent months, the company has raised billions of dollars via multiple debt offerings to bolster its BTC holdings.

On June 13, the firm announced a new $500 million debt sale of convertible notes to further boost its Bitcoin reserves. The company later increased the offering amount to $700 million on June 14.

Bernstein believes that MicroStrategy's proactive stance and substantial Bitcoin holdings position it to benefit significantly from the projected growth in crypto value over the coming decade.

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