Bernstein analysts project Bitcoin will hit $200,000 by late 2025, driven by institutional adoption and increased regulatory clarity with a new U.S. presidential administration. Bitcoin has reached $100,000 marking a transformational moment for the cryptocurrency, but more may be in store.
Key Drivers of Growth
Paul Atkins, president-elect Donald Trump's nomination for SEC Chair, is expected to bring a pro-crypto regulatory environment under the next U.S. administration following the SEC's less-than-favorable reign under Gary Gensler. His leadership could shift the SEC’s approach, fostering innovation and adoption of blockchain technology in the U.S.
Bitcoin’s approval as a commodity and the success of spot Bitcoin ETFs, such as BlackRock’s $50 billion IBIT fund, have cemented its position in institutional portfolios. Globally, over $100 billion of funds in Bitcoin ETFs are now managed, reflecting growing interest from major asset managers. Bitcoin ETFs have not just broken, but shattered ETF launch records since their approval earlier this year.
Institutional Adoption Surges
Corporations like MicroStrategy, holding over $40 billion in Bitcoin, continue to position BTC as a treasury asset. Bernstein sees Bitcoin overtaking gold as the primary store of value asset within the next decade, and becoming integral to institutional strategies.
Outlook
Bernstein cites Bitcoin’s finite supply, utility, and improved regulatory environment as catalysts for its projected growth. Despite cyclical volatility, they remain confident in its long-term trajectory.
