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Bernstein analysts believe Bitcoin could surpass 200K by the end of 2025. In one of the boldest predictions yet, the renowned financial analyst firm maintains that position is probable irrespective of the outcome of the November 5, 2024, U.S. elections.
The firm, renowned for its robust analysis within the emerging market arena, including the emerging cryptocurrency market, gave an optimistic outlook for BTC based on various macroeconomic factors. According to the latest Bernstein analysts forecast, the current monetary expansion, record debt levels, and U.S. fiscal indiscipline could positively impact Bitcoin and help with its anticipated upward trend. Moreover, the analyst considers the increased institutional interest in the U.S. spot Bitcoin Exchange-Traded Funds (ETFs) could further propel Bitcoin’s price positively.
Digital Gold Continues to Draw Interest
The Bernstein Analysts forecast especially points at the demand and supply principle of economics and opines that BTC’s scarcity and the potential rise in demand are the most significant factors that fuel the feeling that Bitcoin could surpass 200K. Experts within the cryptocurrency market have often equated Bitcoin with digital gold and believe it will continue drawing the interest of institutional and individual investors as time goes by.
Bernstein argues that with its fixed supply of 21 million coins, Bitcoin will eventually create a niche as an inflation hedge and become an even more desirable store of value. Bernstein expects the concept of digital scarcity to become the prime mover that could push Bitcoin upwards despite the outcome of the 2024 U.S. elections.
Bernstein Analysts Forecast Increased Institutional Adoption
In addition to the concept of scarcity, the analyst believes Bitcoin could surpass 200K thanks to the ongoing institutional adoption of the coin. There has been an observable increase of interest by financial institutions in recent times as they integrate BTC into several traditional investment portfolios, thereby creating more significant potential for digital assets.
Also, several institutions have increasingly appreciated Bitcoin’s characteristics, like decentralization and its potential to become a hedge, especially during unpredictable economic situations. The latest Bernstein analysts forecast sees the increased constitutional adoption as another catalyst to enhance Bitcoin’s value and strengthen its legitimacy while supporting its higher valuation.
While the most significant digital asset by market cap may have experienced a roller coaster of momentum recently despite the growing retail demand and increased institutional adoption, the Bernstein analysts forecast is beyond the current struggle, mainly due to the ever-increasing ETF market.
The price of BTC recently dropped to below $67,000 a few days after registering an attractive 9.8% as it neared the $70,000 mark. Despite that drop that had investors and other analysts worried that it could have been a signal of a bearish trend, Bernstein states in their report that their prediction is only conservative and that the actual gain could be higher, especially given the prevailing astronomical levels of U.S. debt.
Skeptics Will Soon Recognize Bitcoin
Analyst Gautam Chhugani, the man in charge of the crypto asset section at Bernstein, avers that with its limited supply, Bitcoin will maintain its value. At a time when the U.S. debt has exceeded $35 trillion, high inflation is likely to affect the fiscal market. According to Chhugani, even the worst Bitcoin skeptic will soon recognize BTC as a safe asset and could quickly join the crypto armies. Since the firm predicts that Bitcoin could surpass 200K by 2025, Bernstein advises anyone who may not want to invest directly in Bitcoin to consider stocks of companies like MicroStrategy or Robinhood that not only hold BTC but are also expanding into crypto investment and giving their customers more options.
Conclusion
Contrary to popular opinion, the Bernstein analysts forecast has repeatedly downplayed the effect of a possible Trump or Harris win and its impact on the price of Bitcoin. The analyst believes that Bitcoin will surpass 200K irrespective of policy changes introduced by Trump in case he wins or if there is a lack of them in the event of a Harris win. Coming at a time when regulatory uncertainty persists, Bernstein believes Bitcoin will maintain its value thanks to the resilience of the coin because of its decentralized nature, which allows it to withstand political pressures.
