According to analysts at institutional research firm Bernstein, Bitcoin (BTC) reaching $200,000 by the end of 2025 would be a “conservative” estimate.
Bitcoin to $200,000 by 2025 End?
While BTC remains in range just below its all-time high (ATH) of $73,737, analysts at Bernstein believe their current price forecast of $200,000 for the digital asset by the end of 2025 is conservative.
In a client note shared today, Bernstein analyst Gautam Chhugani wrote: “Bitcoin is headed to $200,000 this cycle,” highlighting the significance of the limited supply of 21 million in assets, especially in light of mounting U.S. debt. He added:
If you’re a Bitcoin skeptic, a limited supply of digital assets with a “store of value” might not be such a bad thing in a world where US debt is reaching new records ($35 trillion now) and the threat of inflation remains is always lurking. If you love gold here, you should love bitcoin even more.
Chhugani also suggested that if investors are hesitant to gain direct exposure to BTC, they can invest in companies like MicroStrategy or Robinhood to gain indirect exposure to the asset’s price movement.
Growing institutional interest in Bitcoin Exchange-Traded Funds (ETF) further strengthens the case for a possible near-term BTC rally.
In a recent filing with the U.S. Securities and Exchange Commission (SEC), JP Morgan says declared At the end of the third quarter of 2024, BTC ETFs were worth $272 million. At the time of writing, cumulative total net inflows into US-based spot BTC ETFs stand at $21.15 billion, according to facts from SoSoValue.
Several statistics point to a potential BTC rally
While Bitcoin ETFs continue to attract institutional investment, several other data points point to a greater possibility for a BTC rally by year’s end.
For example, Bitcoin’s mining difficulty recently rose to 95.67 terahashes, up from 3.9% on October 22. Year-to-date (YTD), mining difficulty has increased by approximately 30%, from 72 terahashes earlier this year to over 95 terahashes. .
Similarly, Bitcoin mining has recently created hashrate jumped to a new ATH of 700 exahashes per second (EH/s).
For those unfamiliar, exahashes measure the computing power required to mine and record transactions on a blockchain that operates on a proof-of-work (PoW) consensus mechanism.
A rise in Bitcoin mining difficulty and hashrate is generally bullish in the long term for BTC, as it signals stronger network security and growing miner confidence in future profitability – both signs of strong demand for the asset.
Moreover, a recent one report shed light on the dramatic rise in BTC holdings among ‘accumulation addresses’, indicating that long-term holders continue to acquire digital assets to benefit from future price increases.
However, Bitcoin still is struggle to decisively break the psychologically important resistance level at $70,000. At the time of writing, BTC is trading at $66,000, down 2.2% in the last 24 hours.
Featured image from Unsplash.com, chart from TradingView.com