Bitcoin May Be Down — But Bernstein Analysts Still See BTC Tapping The Magical $150,000 Mark ⋆ ZyCrypto

Despite Bitcoin's recent decline below its November 2021 high, Bernstein, a global investment firm, remains optimistic about its future prospects. Bernstein has maintained its prediction that Bitcoin will reach $150,000 by the end of 2025, or even earlier. The firm believes that the recent market volatility has "cleaned up" excess leverage and that demand for Bitcoin ETFs will continue to drive up its price.

Bernstein Forecasts Bitcoin Price to Reach $150,000 by 2025, Driven by ETF Inflows

Despite Bitcoin (BTC) retreating from its record high of nearly $74,000 in March, global investment firm Bernstein remains bullish on the cryptocurrency, predicting a rise to $150,000 by the end of 2025 or sooner.

Bernstein's $150,000 BTC Price Call

In a report released on Monday, May 6, Bernstein analysts Gautam Chhugani and Mahika Sapra expressed renewed confidence in their $150,000 price target for Bitcoin by 2025, originally made last year. Despite recent market fluctuations, they believe that Bitcoin is far from reaching its peak.

"We believe we are in mere first quartile of this cycle, and the market has another 15-18 months before we consider this market topping out," the analysts stated.

SEC Approval of Spot Bitcoin ETFs

The analysts attributed the recent pullback in Bitcoin's price to a correction of excess leverage in futures contracts. However, they noted that the subsequent approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) has created a significant inflow of funds into the cryptocurrency.

"Spot BTC ETFs recently saw cumulative net inflows after eight straight days of outflows," they reported. "Even Grayscale's converted GBTC ETF, which has lost billions since January, reversed its downward trajectory by recording its first net inflow of $63 million over the weekend."

Increased Demand for ETF Products

Bernstein analysts believe that demand for ETF products will continue to drive up the price of Bitcoin. They explained that new spot ETFs have absorbed significant selling pressure from GBTC, indicating a growing appetite for regulated exposure to Bitcoin.

"This is significant considering GBTC has been a source of significant and continued selling, which the new 9 ETFs have had to absorb, they explained.

External Endorsement

Bernstein's bullish stance on Bitcoin is echoed by other industry experts. British multinational bank Standard Chartered predicted in April that Bitcoin could reach $150,000 by 2024 year-end due to the popularity and inclusion of ETFs in wider macro funds.

Disclaimer

The information provided in this article represents the views and opinions of industry analysts and should not be construed as financial advice. Investors should conduct their own thorough research before making any investment decisions.