In a remarkable move, Bernstein analysts Gautam Chhugani and Mahika Sapra have significantly revised their price targets for Bitcoin (BTC) in their latest market report. The report not only revised their BTC price forecasts but also initiated coverage of the software company MicroStrategy, highlighting the potential benefits of its BTC exposure.
Bitcoin to Reach $200,000 by 2025, $1 Million by 2033
The Bernstein analysts have predicted that Bitcoin will reach a cycle high of $200,000 by 2025 and then go on to hit the monumental figure of $1 million by 2033. This represents a significant upward revision from their previous target of $150,000 by 2025.
The analysts cited the growing institutional demand for Bitcoin as a key factor driving their revised price targets. They anticipate that the demand for Spot Bitcoin ETFs will continue to surge, leading to a substantial increase in the amount of BTC under management, from the current $60 billion to a projected $190 billion by 2025.
“We believe MSTR’s long term convertible debt strategy allows it enough time to gain from Bitcoin upside, with limited liquidation risk to its Bitcoin on balance sheet.”
Furthermore, the analysts noted that the upcoming Bitcoin halvings, which will reduce the miners’ supply, will further support their bullish case for BTC reaching $1 million by 2033.
MicroStrategy to Benefit from Bitcoin’s Growth
Bernstein analysts also initiated coverage on MicroStrategy, the software company that has been at the forefront of institutional Bitcoin adoption. They assigned an “outperform” rating to the company’s stock, predicting it could rise to $2,890, representing a 95% increase from its current value of around $1,500.
The research firm highlighted MicroStrategy’s commitment to “building the world’s largest Bitcoin company,” which has already paid off significantly. Since August 2020, when the company began accumulating Bitcoin, it has transformed from a “small software company to the largest BTC holding company,” with holdings worth around $14.5 billion, equivalent to 1.1% of Bitcoin’s total supply.
The analysts noted that MicroStrategy’s co-founder, Michael Saylor, has become synonymous with the Bitcoin brand, and the company’s position as the leading Bitcoin company has helped it attract “at-scale capital (both debt and equity) for an active Bitcoin acquisition strategy.”
Moreover, Bernstein pointed out that MicroStrategy’s Bitcoin net asset value (NAV) per share “has grown nearly fourfold, surpassing the 2.4x growth in Bitcoin’s spot price,” underscoring the potential benefits of the company’s BTC exposure.
In conclusion, Bernstein’s revised price targets and the positive outlook on MicroStrategy’s prospects highlight the growing institutional interest and belief in Bitcoin’s transformative potential. As the cryptocurrency market continues to evolve, these analysts’ insights provide valuable perspectives on the future of digital assets.
