Bernstein analysts Gautam Chhugani and Mahika Sapra made a major adjustment to Bitcoin's price target in their latest market report, a move that also attracted widespread attention from MicroStrategy.
Not only did the two analysts revise their previous predictions, they also elaborated on several factors that could cause the price of Bitcoin to surge.
Bitcoin price forecast to rise sharply
In the report, Chhugani and Sapra predict that Bitcoin will reach a cyclical high of $200,000 in 2025 and a staggering $1 million in 2033.
This new target shows great confidence in Bitcoin’s future potential, compared to Bernstein’s previous prediction of a Bitcoin price of $150,000 by 2025. However, these analysts have now revised their target and suggested that institutional demand for BTC is one of the reasons why they believe the flagship cryptocurrency can reach such heights.
Bernstein expects spot Bitcoin ETFs to continue to see strong demand, predicting that by 2025, the size of Bitcoin under management could surge to $190 billion, far higher than the $60 billion currently managed by fund issuers.
Analysts believe that as these ETFs accumulate large amounts of Bitcoin for their respective funds, the number of Bitcoins circulating in the market will be significantly reduced, creating upward pressure on prices.
In other words, analysts believe that as spot Bitcoin ETFs continue to accumulate large amounts of Bitcoin to meet the needs of their funds, the number of Bitcoins available in the market will significantly decrease. In addition, two Bitcoin halving events will occur before 2033, which will also cause the Bitcoin supply to miners to further decrease. These factors combine to support their prediction that Bitcoin price is expected to reach $1 million. $BTC
MicroStrategy will benefit significantly from Bitcoin growth
Bernstein analysts initiated coverage of MicroStrategy with an Outperform rating and predicted that its share price could rise to $2,890, about 95% above its current price, thanks to BTC exposure.
MicroStrategy is committed to becoming the world's largest Bitcoin company, and so far, this effort has paid off, with Chhugani and Sapra saying that since August 2020 (when it began accumulating BTC), MicroStrategy has transformed from a small software company to one of the largest Bitcoin holdings.
MicroStrategy currently holds 1.1% of the total supply of Bitcoin, worth approximately $14.5 billion. The company recently announced plans to issue $500 million worth of convertible senior notes, with part of the proceeds from the proposed sale to be used to purchase more Bitcoin, a move that suggests the company’s Bitcoin holdings will increase further.
Bernstein said that MicroStrategy co-founder Michael Saylor has become an iconic figure in the Bitcoin space, and his influence has greatly increased the company's profile. As a leading Bitcoin holder, MicroStrategy has successfully attracted a large amount of capital, including debt and equity, to execute its active Bitcoin purchase strategy.
Bernstein also mentioned that MicroStrategy's Bitcoin net asset value (NAV) per share has nearly quadrupled in dollar terms, far outstripping the 2.4-fold increase in the spot price of Bitcoin over the same period. #比特币价格 #伯恩斯坦 #价格预期
Conclusion
Bernstein analysts are optimistic about Bitcoin's long-term prospects and believe that MicroStrategy's long-term convertible debt strategy will enable it to take full advantage of Bitcoin's upside potential while minimizing Bitcoin liquidation risk on its balance sheet.
As the bitcoin market continues to develop and mature, the strategies of MicroStrategy and similar companies are likely to become a focus of investor attention.
