Analysts Predict Bitcoin Surge to $1M by 2033, Fueled by ETF Demand

Analysts from Alliance Bernstein have given an optimistic prediction for Bitcoin, foreseeing a possible increase in its value over the next ten years. 

They project Bitcoin to reach $200,000 by 2025, rise to $500,000 by 2029, and reach an impressive $1 million by 2033.

BERNSTEIN: “.. We revise up our #Bitcoin price expectation to $200K cycle-high by 2025E (vs. $150K earlier). Our base case estimates: Bitcoin at $200K by 2025E ..

.. $500K by 2029E
.. and $1Mn by 2033E.”

Initiate $MSTR Outperform pic.twitter.com/V3LHUdCPD2

— Carl Quintanilla (@carlquintanilla) June 14, 2024

Gautam Chhugani and Mahika Sapra, the analysts, mentioned their belief that Bitcoin is starting a new bull phase, supported by high demand from spot Bitcoin exchange-traded funds (ETFs). The prediction depends greatly on the growing use of Bitcoin ETFs in traditional investments.

Alliance Bernstein estimates that by 2025, these regulated ETFs could hold around 7% of all Bitcoin in circulation, a figure expected to rise to 15% by 2033. This structural shift, they argue, marks a critical turning point for cryptocurrency, attracting capital from conventional investment pools and driving substantial price appreciation.

ETF Impact and Market Dynamics

Moreover, the analysts highlighted the impact of Bitcoin halving events, where the rate at which new Bitcoins are generated halves approximately every four years. This mechanism, designed to control inflation and ensure scarcity, reduces the sell-pressure from miners, thereby potentially amplifying price increases. 

The analysts noted that each halving historically precedes a period of heightened demand and subsequent price escalation, attributing the phenomenon to emerging catalysts within the market.

The perspective highlights Alliance Bernstein’s belief in Bitcoin’s path, boosted by institutional interest and regulatory changes that have made it more attractive to traditional investors. This positive view is also backed by a thoughtful review of Bitcoin’s role in diverse investment portfolios, showing how digital assets are becoming established as a valid asset category.

Alliance Bernstein’s analysts predict a strong rise for Bitcoin, fueled by growing institutional adoption through Bitcoin ETFs and regular halving events. They expect Bitcoin’s price to reach record highs in the next decade, highlighting positive confidence based on changing market trends and shifts in investment strategies.

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