Another Major Bull! Renowned Firm Predicts Bitcoin Will Hit $150,000 by 2025

Bernstein reiterated in a report that Bitcoin is regaining momentum and will return to the $150,000 trajectory next year.

Gautam Chhugani, a senior analyst at the firm, explained that the recent drop in Bitcoin to $57,000 doesn't imply a permanent decline.

He and analyst Mahika Sapra wrote, "Investors have asked us if our outlook on the $150,000 Bitcoin price has changed or if the post-halving price adjustment affects our confidence. If anything, our view of Bitcoin has only improved."

This projection represents a 137% increase over current levels.

Firstly, inflows into Bitcoin spot ETFs continue and have already reached half of Bernstein's expected trading volume for all of 2024, even though it's only been four months.

"The launch of Bitcoin ETFs has been the most successful ETF issuance in history. We expect the ETF to sustain demand for the rest of the year, with private banks, wealth management institutions, pensions, and sovereign funds increasingly allocating assets to Bitcoin. Overall, we estimate new inflows of about $70 billion in 2024 and 2025," the report stated. Since their inception, around $12 billion has flowed into these funds.

Last week may have worried investors that this trend was reversing, as funds saw eight days of outflows. However, not only did that come to an end, but the Grayscale Bitcoin Trust Fund also saw its first day of inflows, ending one of the persistent resistances in the ETF market.

Secondly, Bernstein highlighted that the Financial Accounting Standards Board's rule updates on cryptocurrencies are driving corporate interest in Bitcoin. For instance, despite already owning about $840 million worth of Bitcoin, Block still announced monthly purchases of the token.

Bernstein also noted that direct spot Bitcoin purchases have been strong, helping offset recent ETF outflows.

Thirdly, the Bitcoin halving in April hasn't put significant pressure on cryptocurrency mining activities. During this four-year event, the number of tokens awarded to successful miners is sharply reduced to decrease Bitcoin's supply.

Although this event is expected to make mining more competitive, the amount of computing resources required for mining hasn't significantly increased so far.

Meanwhile, despite Bitcoin's price rise, mining equipment prices remain relatively low. This gives the industry higher profitability and allows current players to maintain dominance in the field.

Chhugani wrote, "Overall, robust Bitcoin demand and continued discipline in the Bitcoin mining cycle will make this bull run last longer. Reaching $150,000 by 2025 is very possible."

Bernstein isn't the only firm maintaining a bullish outlook. Last week, Standard Chartered Bank reported that Bitcoin could still reach $150,000 this year, though it may first correct to $50,000.