Bernstein boldly predicts that bitcoin will reach $1 million in the next 10 years.

Golden10 Data ·  Jun 17 19:46

Source: Jin10 Data

The demand for spot bitcoin ETF continues to thrive, supported by limited supply and fueling Bernstein's extremely bullish call expectations.

According to a recent report by Bernstein, the price of Bitcoin will soar to $500,000 by the end of the 2030s.

Bernstein analysts Gautam Chhugani and Mahika Sapra said in an initial report on MicroStrategy stocks that Bitcoin is expected to soar by 659% from last Friday to $500,000 by 2029.

The main driving force behind the significant rise in Bitcoin prices will be the strong demand for physically-backed Bitcoin ETFs, which have attracted billions of dollars in assets since they launched earlier this year.

The surging demand, along with decreasing Bitcoin supply, creates a favorable supply-demand dynamic that is expected to continue driving up cryptocurrency prices.

Bernstein explained, "This is due to the unprecedented demand for Bitcoin from an ETF operated by the world's leading asset management company (expected to have $190 billion in assets under management by 2025, currently $60 billion), as well as limited Bitcoin supply."

Chhugani and Sapra said their base prediction is that Bitcoin prices will reach $200,000 by 2025, $500,000 by 2029, and $1 million by 2033.

Bernstein analysts previously predicted that Bitcoin would reach a cycle high of $150,000 in 2025, but their expectations were raised due to strong ETF inflows.

The company's Bitcoin price forecast comes from its initial report on MicroStrategy stocks, which Bernstein says is "building the world's biggest Bitcoin company."

The firm rates MicroStrategy as "outperform" and has a target price of $2,890, representing a 94% upside from last Friday.

MicroStrategy holds 1.1% of the total Bitcoin supply, worth around $14.5 billion. At the same time, MicroStrategy's total market value is $26 billion.

Bernstein believes that MicroStrategy deserves a valuation premium because, compared to passive physically-backed Bitcoin ETFs, it provides investors with an "active leverage" strategy.

Bernstein said, "MicroStrategy's positive buy-and-hold approach over the past four years has resulted in higher EPS growth for Bitcoin/stock, up 67%, or diluted EPS from 6 BTC per share in 4Q 2020 to approximately 10 BTC per share today."

On Monday, Bitcoin traded slightly above $66,000, about 11% lower than its recent all-time high of nearly $74,000.


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