$BTC After a meteoric rally in 2024, Bernstein predicts that bitcoin BTC= will hit $200,000 by the end of 2025 as sovereign adoption of the cryptocurrency gains momentum, along with supply and demand dynamics.

Bitcoin surpassed $100,000 in December, a milestone hailed even by skeptics as a coming of age for digital assets, with investors betting on a friendly U.S. administration to cement cryptocurrencies’ place in financial markets.

U.S. President-elect Trump, who has previously called cryptocurrencies a scam, embraced digital assets during his campaign, promising to make the country the “crypto capital of the planet” and amass a national bitcoin stash.

“The announcement of a national bitcoin reserve by the United States would trigger a global sovereign race for bitcoin acquisition among nation states,” say Bernstein analysts, who estimate that bitcoin will gain 120% by 2024.

At the same time, Bernstein clarifies that his $200,000 forecast does not take into account demand from governments, but only that of institutions and businesses.