ETFs
Bernstein Analysts Revise BTC Target to $200,000, Here’s When — TradingView News
Analysts at global asset management firm Bernstein revised their old Bitcoin target to $200,000, forecasting the influx of Spot Bitcoin ETFs catalyzing this massive price surge.
Bernstein Analysts Raise Bitcoin Target to $200,000
In a note to clients, Bernstein analysts Gautam Chhugani and Mahika Sapra predicted that Bitcoin could reach $200,000 by the end of 2025. This new price target comes after analysts predicted that BTC would reach $150,000 earlier in May. At the time, analysts revealed that they predicted around $70 billion in inflows from Spot Bitcoin ETFs between 2024 and 2025.
Currently, analysts have solidified their predictions, reiterating that Spot Bitcoin ETFs would be the trigger that pushes the price of Bitcoin to $200,000 next year. Analysts have estimated that demand for Spot BTC ETFs could grow to account for around 7% of total BTC in circulation.
They revealed their expectations for significant adoption of Spot Bitcoin ETFs, highlighting the possibilities of approvals from major wirehouses and large private banking platforms in the third and fourth quarters. Analysts also revealed that nearly 80% of Spot Bitcoin ETF inflows are generated by self-directed retail investors who invest through brokerage platforms.
They believe that institutional investor demand for Spot BTC ETFs is still in its early stages. However, as the market continues to evolve, interest from institutional investors could increase, massively increasing current inflows into Spot Bitcoin ETFs.
Bernstein analysts wrote in their notes to clients that currently, about $15 billion in net new flows have been generated by the ETFs combined. According to Farside data, cumulative inflows into Spot Bitcoin ETFs have reached $14.66 billion since their launch on January 11.
Due to the high demand and massive influx of capital into this asset class, analysts expect Spot Bitcoin ETFs to be equivalent to 7% of the circulating supply of BTC by 2025 and to 15% by 2033. They also forecast that the total assets under management (AuM) of the Spot Bitcoin ETF. to reach $190 billion by the 25E market peak and a whopping $3 trillion by 2033.
This bullish forecast highlights the analyst’s confidence in Spot BTC ETFs, despite it being a newly discovered asset class. In less than six months, total assets under management for Spot Bitcoin ETFs grew to $59.19 billion, with an average expense ratio of 1.07%. This massive growth has been led by large asset management firms like BlackRock, Fidelity and others.
BTC price enters new bullish cycle
In their note, Bernstein analysts also said that BTC has officially entered a new bull market cycle. Analysts revealed that this bull cycle is currently driven by the recent Bitcoin halving event, which took place on April 20.
They anticipate the rise of new catalysts that could trigger an increase in demand for BTC, propelling its price to new levels. In contrast, crypto analyst Michael van de Poppe predicted that BTC would likely have bottomed between the $63,000 and $65,000 price range.
At the time of writing, the cryptocurrency is trading at $63,865, reflecting a weekly decline of 4.76%. Poppe suggested a potential reversal on the horizon, predicting that Bitcoin could soon find itself in upward momentum.