Bitcoin Going to $200K by 2025 Is a ‘Conservative’ Estimate, Says Global Asset Manager Bernstein

by

As an analyst with over two decades of experience in the financial industry, I have witnessed numerous market cycles and trends that have shaped the global economy. The recent Bitcoin price prediction by Bernstein, a firm known for its rigorous research and conservative approach, is intriguing to say the least.

Analysts from Bernstein, a renowned research and brokerage company, have expressed their Bitcoin price forecast of $200,000 by 2025 as relatively moderate. They encourage those who are uncertain about cryptocurrency to rethink its possibilities, taking into account the increasing U.S. government debt.

AllianceBernstein, previously known as Bernstein, is a globally recognized investment management company, distinguished for its proficiency in asset management and sell-side research. This firm caters to a wide array of clients, which include institutional investors, wealthy individuals, and retail customers. AllianceBernstein is admired for its active management strategy, providing customized investment options across several asset categories such as stocks, bonds, alternative investments, and multi-asset strategies.

Beyond handling asset management tasks, Bernstein is also renowned for its elite research arm, Sanford C. Bernstein. This segment offers extensive equity research and analysis, valued within the finance world for its unbiased and thorough market analyses that frequently influence the investment strategies of major financial institutions.

As per a report by James Hunt for The Block, Gautam Chhugani, who heads Bernstein’s digital assets division, told clients in a note on Wednesday that Bitcoin is forecasted to reach $200,000 by the conclusion of the current cycle, estimated to be 2025. This projection, he stated, is considered a more moderate assessment.

As an analyst, I’ve recently found myself drawn to the insights presented in Bernstein’s “Bitcoin Blackbook,” a comprehensive guide tailored for institutional investors exploring the cryptocurrency realm. In a financial landscape where the U.S. national debt has surged to a staggering $35 trillion and inflationary threats loom, Bitcoin’s inherent scarcity as a digital asset stands out as an attractive feature as a “store of value.” For those who already consider gold a sound investment, Bitcoin presents an even more enticing opportunity.

For investors looking for indirect exposure to Bitcoin, Chhugani suggested considering companies like MicroStrategy, which holds the largest amount of Bitcoin on its corporate balance sheet, and Robinhood, which is growing its crypto offerings.

Additionally, Chhugani highlighted the promising prospects of American companies like Riot Platforms and CleanSpark, who are building substantial energy capabilities for Bitcoin mining. He mentioned that Core Scientific is making use of its resources not only for Bitcoin mining but also for artificial intelligence (AI) hosting services, capitalizing on the rising need for AI infrastructure.

Currently, I’m observing that each Bitcoin is going for approximately $66,349, a decrease of 0.7% over the past 24 hours. Compared to its all-time high of around $73,737 reached on March 14, 2024, the price has dipped by about 9.5%. However, it’s important to note that year-to-date, Bitcoin has shown a significant increase of approximately 58.31%.

As a crypto investor, I’m excited about the bullish outlook for Bitcoin presented by Jamie Coutts, Real Vision’s Chief Crypto Analyst, on October 16. He believes that the growing interest from institutional investors is a key factor driving this optimism. Notably, BlackRock CEO Larry Fink’s public endorsement of Bitcoin has played a significant role in this shift.

With cryptocurrency advocate Fink advocating for Bitcoin’s portfolio-boosting attributes, a significant change in asset allocation choices is taking place. The BlackRock Aladdin platform, used by major sovereigns and financial managers, offers the necessary tools for modeling, analysis, and attribution during this transition…

— Jamie Coutts CMT (@Jamie1Coutts) October 16, 2024

Read More

2024-10-23 17:56