Bernstein's expert analyses indicate that the cryptocurrency industry is entering what could be called the 'Era of Infinity', a new era of continuous growth and total integration into global financial systems.
Analysts describe this stage as a period in which digital assets become a recognized and integrated part of the changing framework of the modern economy.
The analysis team led by Gautam Chughani stated: 'We expect a symbiosis between cryptocurrencies and artificial intelligence. Additionally, we anticipate that boom and bust cycles will be less frequent. Cryptocurrencies are now in the spotlight of companies, banks, and institutions, making them an integral part of our financial systems.'
In its report, Bernstein highlighted 10 key forecasts for 2025:
1. Bitcoin reaches $200,000
Bernstein expects the price of Bitcoin to reach $200,000 by the end of 2025. This forecast is driven by institutional demand and demand from businesses rather than sovereign purchases.
Analysts explained: 'Our strategy regarding the price of Bitcoin reaching $200,000 is based simply on supply and demand.'
Currently, 450 Bitcoin are being mined daily, but institutional treasuries and exchange-traded funds have acquired the equivalent of 20 times that amount since the U.S. elections. Although the price of Bitcoin has increased by 43% during this period, analysts believe it could have been higher. It is worth noting that 60% of Bitcoin has not moved in over a year. With the increasing acquisition by investment funds and large corporations, which now represent 11% of the market, Bernstein expects Bitcoin ownership to shift to long-term investors like MicroStrategy.
2. Institutional demand for Bitcoin reserves
Institutional treasury investments in Bitcoin are expected to exceed $50 billion, more than double the levels of 2024. MicroStrategy is leading this trend by increasing its holdings using innovative financing mechanisms.
3. Increase in Bitcoin exchange-traded funds
Bernstein notes that institutional flows into Bitcoin exchange-traded funds could exceed $70 billion by 2025, representing 8% of Bitcoin's market capitalization. This growth reflects the increasing acceptance by hedge funds, banks, and wealth managers.
4. The transition of miners towards artificial intelligence
Bitcoin miners are heading towards artificial intelligence and diversifying their operations to include data centers for long-term stability. Companies like Riot Platforms and Core Scientific are leading this trend, as their investments in artificial intelligence infrastructure are expected to attract broader institutional support.
5. Regulatory changes
The U.S. regulatory framework is expected to become more positive, with legislation clarifying the structure of digital assets and expanding the powers of the Commodity Futures Trading Commission (CFTC). At the same time, analysts expect the U.S. Securities and Exchange Commission (SEC) to withdraw its lawsuits against major cryptocurrency companies and protocols or resolve them.
6. Increase in stablecoin adoption to $500 billion
The use of stablecoins is expected to exceed $500 billion, driven by cross-border transfers between companies. Institutions are increasingly turning to stablecoins for efficiency and low-cost instant settlement.
7. Surge of initial public offerings in cryptocurrencies
Bernstein anticipates a wave of initial public offerings from cryptocurrency-related companies this year, thanks to the clarity of regulatory laws. It is also expected that trading tokenized stocks on public cryptocurrency platforms will gain momentum.
8. The expansion of financial institutions in the offering of cryptocurrency products
Banks and asset managers are likely to offer a wide range of cryptocurrency-related products in the coming months, including custody services, structured over-the-counter derivatives, and decentralized finance funds, to meet the growing client demand for diversified exposure to cryptocurrencies.
9. Recovery of Ethereum
Over the next twelve months, Bernstein analysts expect Ethereum to strengthen its position as the second most valuable blockchain network, driven by contracting supply dynamics and its use in decentralized finance. The strong price movement of Ethereum reflects an increase in adoption and institutional interest.
10. The convergence of artificial intelligence and cryptocurrencies
Finally, the convergence of artificial intelligence and cryptocurrencies is expected to give rise to a new sector of innovation, including applications ranging from AI-backed cryptocurrency wallets to independent agents using blockchain for payments and identity verification.
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