ETFs
Bitcoin Will Hit $500,000 By End Of This Decade As ETF Demand Explodes, Bernstein Says
Business Insider
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Bitcoin is expected to reach $500,000 by 2029, according to Bernstein.
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The bullish outlook is driven by a sustained boom in demand for Bitcoin ETFs, combined with limited supply.
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Bernstein started MicroStrategy stock at “Outperform” with a price target of $2,890.
The price of bitcoin is expected to reach $500,000 by the end of the decade, according to a recent note from Bernstein.
In an introductory note from MicroStrategy stocks, Bernstein analysts Gautam Chhugani and Mahika Sapra said bitcoin was poised to surge 659% from Friday afternoon levels to reach half a million dollars by 2029.
The cause of this massive price rise is the growing demand for Bitcoin ETFs, which have attracted tens of billions of dollars in assets since their launch earlier this year.
This growing demand, combined with an ever-decreasing supply of bitcoin, creates a supply and demand dynamic that should allow the cryptocurrency to continue to rise.
“This is due to unprecedented demand for Bitcoin ($190 billion in assets under management in 2025E compared to $60 billion today) via ETFs managed by the world’s leading asset managers, and a supply of Bitcoin limited,” Bernstein said.
Chhugani and Sapra said their base case scenario for bitcoin price was $200,000 by 2025, $500,000 by 2029, and $1 million by 2033.
Analysts previously expected bitcoin to hit a cyclical high of $150,000 in 2025, but they increased their estimates due to strong ETF flows.
The company’s forecast was part of its opening note covering Microstrategy, which Bernstein said is “building the largest Bitcoin company in the world.”
The company rates MicroStrategy as “outperform” with a price target of $2,890, representing a potential upside of 94% from Friday afternoon’s price.
MicroStrategy has accumulated 1.1% of the total Bitcoin supply, an amount that is worth approximately $14.5 billion. Meanwhile, MicroStrategy has a total market valuation of $26 billion.
Bernstein says MicroStrategy deserves a premium valuation because it offers investors an “actively leveraged” strategy compared to passive Bitcoin ETFs.
“Over the past 4 years, MSTR’s active strategy has generated higher Bitcoin per share – BTC/share increased 67%, or 6 Bitcoin per diluted share in Q4 2020 compared to around 10 today,” Bernstein said.
Bitcoin traded just above $65,000 on Friday, about 12% below its all-time high of nearly $74,000.
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