Bernstein Research, a prestigious division of AllianceBernstein’s global asset management arm, projects Bitcoin to reach $200,000 in 2025. According to the company, it is not a prediction. “conservative” In its 160-page latest edition “Black Book” Bitcoin
Why BTC price will hit $200,000 in 2025
Bernstein’s report” titled “From Coin to Computing: The Bitcoin Investing Guide,” The multifaceted factors driving Bitcoin’s growth are explored. The firm highlights the rise in institutional adoption and the growing market for Bitcoin exchange-traded funds (ETFs)The evolving role of Bitcoin Miners both in the artificial-intelligence (AI) and cryptocurrency sectors.
“If you are a Bitcoin skeptic … maybe a limited supply, ‘store of value’ digital asset is not such a bad thing in a world where U.S. debt hits new records ($35 trillion now) and threats of inflation still loom. If you like gold here, you should love Bitcoin even more,” writes Gautam Chougani, Senior Analyst and Director of Bernstein.
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The report highlights the significant change in patterns of institutional investments. Bernstein reports that global asset managers hold $60 billion of Bitcoin and Ethereum exchange-traded funds (ETFs), a fivefold rise from the $12 billion they held in September 2022. The launch of the ETFs is described as “the most successful in the history of exchange-traded funds,” Over $18.5 billion has been inflows since January.
“By 2024 end, we expect Wall Street to replace Satoshi as the top Bitcoin wallet,” The report says. Bernstein attributes these surges to the logistical problems of retail investors self-custody. “With institutional players flocking to Bitcoin, ETFs are proving to be the entry point for large-scale investment in digital assets,” The firm’s notes
Bernstein’s bullish position on Bitcoin is supported by its analysis and behavior of the market. BTC’s price has risen by 120% in the last 12 months. Its market cap is now $1.3 trillion.
“With institutional adoption accelerating, we expect Bitcoin to triple from its current levels,” Bernstein projects. According to the firm, Bitcoin’s market capital could reach over $3 trillion in 2025 due to increased investments from pension funds and registered investment advisers.
This report suggests also that the larger financial organizations will have a greater influence as the market matures. “This new institutional era, in our view, could push Bitcoin to a high of $200,000 by 2025 end,” The analysts emphasize that their forecasts are accurate. “conservative” The current institutional engagement trajectory is a good indicator of the future.
Bitcoin Treasury And Mining
Bernstein’s latest report highlights Bitcoin adoption by corporations as an asset for corporate treasuries. The company highlights MicroStrategy Incorporated is a leading example. MicroStrategy, led by CEO Michael Saylor has invested more than 99% in Bitcoin. It owns approximately 1,3% of total Bitcoin supply.
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“We view MicroStrategy as an active leveraged Bitcoin equity strategy,” Bernstein says that holding Bitcoins directly or through ETFs has provided superior returns to the stock of this company.
Bernstein’s report sheds further light on trends of consolidation within the Bitcoin industry. Riot Platforms, CleanSpark and Marathon Digital Holdings have acquired smaller mining operations. This has led to an industrialized industry.
Leading US Bitcoin miners According to the report, “Some of these companies have consolidated their shares and are now energy infrastructure players.” “We expect Riot, CleanSpark, and Marathon to consolidate the Bitcoin mining industry.” Bernstein estimates that by 2025, these miners will account for 30% of the total Bitcoin hashrate.
They also explore how AI and Bitcoin mining can work together. The GPU cloud is attracting Bitcoin miners as partners. They offer gigawatts-scale access to energy, and they reduce costs. “time to market” AI data centres can be powered by solar energy.
“Miners present an energy arbitrage opportunity, trading at $2-4 million per megawatt, compared to $30-50 million per megawatt for legacy data centers,” Bernstein observes. Core Scientific, Iris Energy and other companies are taking advantage of this trend by building AI data centers in conjunction with Bitcoin mining operations.
“Bitcoin miners are evolving into essential partners for AI data centers as they capitalize on excess energy capacity and offer efficient solutions for high-performance computing,” Bernstein states. This convergence increases the viability and scale of AI infrastructures, as well as diversifying revenue streams for miner.
BTC was trading at $67.162 as of the time this article went to press.
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Source: www.newsbtc.com
