Bitcoin to reach $200,000 next year, says Bernstein. Here’s what will drive the rally

Unprecedented demand from institutional players will drive Bitcoin’s price to $200,000 in 2025, according to Bernstein analysts.

The estimate is an update from their previous predictions that the price of the world’s largest cryptocurrency will reach $150,000 over the next year.

“Bitcoin is in a new bull cycle,” Gautam Chhugani and Mahika Sapra wrote in a report this week, also suggesting that Bitcoin will hit $500,000 in 2029 and $1 million in 2033.

The key reason? The success of spot Bitcoin exchange-traded funds run by Wall Street giants like BlackRock and Fidelity.

Bernstein expects these funds to increase their assets under management by over 216% to $190 billion over the next year — eventually holding 15% of the total amount of Bitcoin by 2033.

“The US regulated ETFs were the watershed moment for crypto that brought in structural demand from traditional pools of capital,” Chhugani and Sapra wrote.

Since their January approval, US spot Bitcoin ETFs have seen over $15 billion in inflows, according to data from SoSoValue.

Bitcoin has surged about 70% to $66,900 since their launch, reaching a new all-time high of $73,700 in March.

The rally has moved Bitcoin bulls to predict the cryptocurrency will hit new milestones this year.

Mike Novogratz, founder and CEO of crypto investment firm Galaxy Digital, for instance, said it’s likely that Bitcoin will hit $100,000 by the end of the year.

VanEck head of digital assets research Matthew Sigel has told DL News that Bitcoin could reach $350,000 by 2030.

Other estimates see Bitcoin reach $500,000 over the next five years.

Crypto market movers

• Bitcoin is down 1.1% to $66,910 over the past 24 hours.
• Ethereum is up 0.4% to $3,510.

What we’re reading

• Crypto’s favourite regulator doesn’t have enough teeth, US senator says — DL News.
• MicroStrategy To Purchase More Bitcoin (BTC) With $500M Capital Raise — Milk Road.
• CRV Sitting on Exchanges Reaches an All-Time High as CRV Price Hits All-Time Low —Unchained.
• Federal Reserve Keeps Interest Rates Steady At 5.25%–5.50% — Milk Road.
• Ethereum ETFs will win SEC nod this summer, says Chair Gary Gensler — DL News.

Eric Johansson is DL News’ News Editor. Got a tip? Email at eric@dlnews.com.