Bitcoin Price Projected to Hit $200K by 2025, Bernstein Research Says

Bitcoin, the world’s first and largest cryptocurrency, is expected to reach $200,000 by 2025, according to new projections from Bernstein Research. This forecast marks an increase from their previous target of $150,000 set last year.

Bernstein, an investment and research firm, attributes the optimistic price target to several key factors, including the outcome of the recent U.S. election, growing institutional demand, wider adoption, and potential changes in cryptocurrency regulations.

U.S. Election and Pro-Crypto Leadership Boost Bitcoin Sentiment

The election of Donald Trump as U.S. President has fueled speculation that key government positions, such as the SEC Chair and Secretary of the Treasury, could be filled by pro-crypto figures. Industry insiders believe this shift in leadership could create a more favorable regulatory environment for Bitcoin and other digital assets.

Notable figures like Howard Lutnick, CEO of Cantor Fitzgerald, and Scott Bessent, founder of Key Square Group, have been suggested as potential replacements for current Treasury Secretary Janet Yellen, further strengthening expectations of a crypto-friendly administration.

Institutional Demand Driving Bitcoin’s Surge

Institutional interest in Bitcoin is also expected to play a major role in driving its price to new highs. A growing number of large companies are acquiring Bitcoin and crypto-related products, including exchange-traded funds (ETFs). Recently, Goldman Sachs increased its investment in BlackRock’s iShares Bitcoin Trust ETF (IBIT) by $710 million, highlighting the increasing mainstream acceptance of digital assets.

Additionally, the introduction of initiatives like the Bitcoin Act and the Bitcoin Strategic Reserve, championed by U.S. Senator Cynthia Lummis, seeks to position Bitcoin as a financial reserve asset, alongside traditional assets like gold.

Bullish Long-Term Outlook: $1 Million by 2033

Bernstein’s analysts also offered a long-term projection, forecasting that Bitcoin’s price could reach $500,000 by 2029 and potentially $1 million by 2033. They believe the growing adoption of Bitcoin ETFs will significantly increase institutional demand, with ETFs potentially accounting for 15% of Bitcoin’s circulating supply by 2033.

“We believe that U.S.-regulated Bitcoin ETFs represent a watershed moment for crypto, bringing structural demand from traditional pools of capital,” said Bernstein analysts Gautam Chhugani and Mahika Sapra.

Since the launch of Bitcoin spot ETFs in January 2023, over $28 billion has flowed into these products, signaling strong investor interest. Other countries have also followed suit, launching their own Bitcoin ETF products, further legitimizing the asset in global financial markets.

Overall, Bernstein’s research paints a highly optimistic picture for Bitcoin’s future, driven by increasing institutional participation and a favorable regulatory environment.