Bernstein Analysts Revise Bitcoin Target, $200,000 And $1 Million Become Main Focus
June 15 2024 - 7:00PM
NEWSBTC
Bernstein analysts Gautam Chhugani and Mahika Sapra recently
revised their price targets for Bitcoin in their latest market
report, which also initiated coverage on MicroStrategy. These
analysts also outlined factors that they believe could contribute
to BTC’s exponential price surge. Bitcoin To Hit $200,000 And
Then $1 Million Chhugani and Sapra predicted in the report that
BTC will rise to a cycle high of $200,000 by 2025 and that the
flagship crypto will reach $1 million by 2033. Bernstein had
previously predicted that Bitcoin would reach $150,000 by 2025.
However, these analysts have now revised their targets and alluded
to the institutional demand for BTC as one of the reasons they
believe the flagship crypto can reach such heights. Related
Reading: Crypto Analyst Lists The Cardano Developments That Will
Drive ADA Price To $3 In 2024 The research firm predicts that the
Spot Bitcoin ETFs will continue to record impressive demand and
that the Bitcoin under management could reach $190 billion by 2025,
a significant increase from the $60 billion in BTC that funds
issuers already have under management. In other words, these
analysts expect BTC’s price to succumb to the supply and demand
dynamics, considering that the Bitcoin in circulation is bound to
drastically reduce as these Spot Bitcoin ETFs continue to
accumulate a significant amount of the crypto token for their
respective ETFs. Moreover, two Bitcoin halvings are set to occur
before 2033, further reducing miners’ supply and thereby supporting
their base case of BTC hitting $1 million. MicroStrategy To
Benefit From BTC’s Growth These Berstein analysts also initiated
coverage on MicroStrategy with an outperform rating. They predict
that the software company’s stock can rise to $2,890 thanks to its
BTC exposure. A rise to $2,890 represents about a 95% increase for
MicroStrategy’s stock, which is currently valued at around
$1,500. The research firm noted that MicroStrategy has
committed itself to “building the world’s largest Bitcoin company.”
This has already paid off so far, with Chhugani and Sapra stating
that the software company has transformed from a “small software
company to the largest BTC holding company” since August 2020 (when
it started accumulating BTC). MicroStrategy already owns 1.1%
of Bitcoin’s total supply, with holdings worth around $14.5
billion. The company’s BTC holdings are expected to increase soon
enough, as they recently announced plans to offer $500 million of
Convertible Senior Notes. Some of the proceeds from the proposed
sale will be used to buy additional BTC. Related Reading:
Ethereum Withdrawals From Coinbase Top $1.2 Billion, What’s Going
On? Berstein highlighted how the company’s co-founder Michael
Saylor has become synonymous with the Bitcoin brand and that the
company’s position as the leading Bitcoin company has helped
attract “at scale capital (both debt and equity) for an active
Bitcoin acquisition strategy.” In dollar terms, Bernstein noted
that MicroStrategy’s Bitcoin net asset value (NAV) per share “has
grown nearly fourfold, surpassing the 2.4x growth in Bitcoin’s spot
price.” “We believe MSTR’s long term convertible debt strategy
allows it enough time to gain from Bitcoin upside, with limited
liquidation risk to its Bitcoin on balance sheet.” Chhugani and
Sapra added. Featured image created with Dall.E, chart from
Tradingview.com
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