Bernstein: BTC is expected to exceed $200,000 in 2025, and ETH may become the next "institutional darling"

Analysts at brokerage firm Bernstein listed their predictions for 2025, saying they believe cryptocurrencies are entering what they describe as the "Age of Infinity." The "Age of Infinity" refers to "a long period marked by continued evolution and widespread acceptance, culminating in cryptocurrencies no longer being a controversial topic but becoming part of the financial system built for the new smart era." In laying out their expectations, the analysts reiterated their target of $200,000 for Bitcoin by the end of 2025, against the backdrop of a rising narrative around sovereign adoption, especially after President-elect Donald Trump's strategic Bitcoin reserve commitment. Bernstein also predicted that U.S. spot Bitcoin ETFs will attract more than $70 billion in net inflows, almost double the approximately $35 billion in 2024, driven primarily by accelerated institutional adoption by hedge funds, banks and wealth advisors, and that ETF momentum will continue between Bitcoin and Ethereum, but there may be a Solana ETF by the end of the year. "If the U.S. announces a national Bitcoin reserve, it will trigger a global sovereign race to acquire Bitcoin," said Chhugani. "Our $200,000 Bitcoin price forecast does not take into account government demand, only institutional and corporate demand." Regarding the Bitcoin forecast, the analysts said that miners will "have to" continue to turn their computing power to artificial intelligence (AI) to create value. This year, the crypto industry will have a greater integration with the field of artificial intelligence, and the intersection of AI and cryptocurrency is driving innovation on multiple fronts. In addition, analysts expect the pro-cryptocurrency U.S. Securities and Exchange Commission (SEC) to withdraw or settle existing cases related to crypto companies and allow more private crypto companies to enter the public market, and IPOs will become a further positive catalyst for the market. Finally, Chhugani said that despite last year's poor performance, Ethereum is expected to become the next "institutional darling" in 2025. Analysts believe that with 28% of Ethereum staked, 3% absorbed by ETFs, and 7.5% locked in smart contracts, Ethereum's limited supply and its utility as a collateral asset for fee payments and across Layer 1 and Layer 2 chains enhance its appeal among traditional investors seeking intrinsic value. (The Block)