Bernstein Analysts Predict Bitcoin Could Reach $200,000 by Next Year Due to ETF Inflows

Bernstein Analysts Predict Bitcoin Could Reach $200,000 by Next Year Due to ETF Inflows

Analysts at research and brokerage firm Bernstein have revised their Bitcoin upward price target, predicting that the cryptocurrency could reach nearly $200,000 by the end of next year. This optimistic forecast follows strong inflows into US spot Bitcoin exchange-traded funds (ETFs) since their approval in January. Previously, Bernstein set a target of $150,000 for Bitcoin.

The analysts’ projection is based on the assumption that spot Bitcoin ETFs will represent approximately 7% of the total circulating Bitcoin supply by the end of 2025. “We view Bitcoin ETFs as being poised to be approved by major wiring agencies and large private banking platforms. in the third and fourth quarters,” Bernstein analysts Gautam Chhugani and Mahika Sapra wrote in a note to clients.

They describe institutional basis trading as a “Trojan horse” to adopt, with institutional investors currently evaluating long positions. Currently, nearly 80% of spot Bitcoin ETF flows come from self-directed retail investors through brokerage platforms, while institutional integrations with wire houses are in their early stages.

According to Bernstein, the combined ETFs have already attracted about $15 billion in net new flows. Analysts expect Bitcoin ETFs to account for about 7% of Bitcoin in circulation by 2025 and about 15% by 2033. They predict that spot Bitcoin ETFs will reach about $190 billion in assets under management (AuM) by the market peak in 2025 and $3 trillion. by 2033.

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