Analysts at a global asset management company Bernstein revised their former Bitcoin target to $200,000, anticipating Bitcoin inflows Discover the inflows of Bitcoin ETFs that catalyze this enormous price increase.
Bernstein Analysts Increase Bitcoin Target to $200,000
In a note to clients, Bernstein analysts Gautam Chhugani and Mahika Sapra predicted that Bitcoin could reach $200,000 by the end of 2025. This new price target comes after analysts projected BTC to reach $150,000 earlier in May. At the time, analysts said they expected around $70 billion inflow of Spot Bitcoin ETFs between 2024 and 2025.
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Currently the analysts have done that confirmed their predictions, reiterating that Spot Bitcoin ETFs would be the trigger to drive the price of Bitcoin to $200,000 next year. Analysts have estimated that Discover BTC ETFs Demand could grow to around 7% of the total BTC in circulation.
They announced their expectations for Spot Bitcoin ETFs growing significantly in adoptionhighlighting the possibilities of large and large wire housing approvals private banking platforms in Q3 and Q4. The analysts also revealed that nearly 80% of Spot Bitcoin ETF inflows are self-driven private investors who invest via broker platforms.
They believe that institutional investor demand for Spot BTC ETFs is still in its early stages. However, while the market continues to develop interest from institutional investors could rise, which could contribute immensely to the current inflows into Spot Bitcoin ETFs.
Bernstein analysts wrote in their notes to clients that currently about $15 billion in net new flows has been brought in by ETFs combined. The cumulative inflows into Spot Bitcoin ETFs according to Data on the other sidehave reached $14.66 billion since launching on January 11.
Due to high demand and the massive amount of capital flowing into this asset class, analysts expect Spot Bitcoin ETFs to equal 7% of the The circulating supply of BTC by 2025 and 15% by 2033. They also expect Spot Bitcoin ETF’s total Assets Under Management (AuM) to reach $190 billion by the peak of the 25E market and as much as $3 trillion by 2033.
This bullish forecast underlines analysts’ confidence in Spot BTC ETFs, despite it being a newly discovered asset class. In less than six months, total assets under management for Spot Bitcoin ETFs have increased grown to $59.19 billion, with an average expense ratio of 1.07%. This tremendous growth was led by leading asset management firms such as Black rockTrouw and others.
BTC price enters the new bull cycle
In their note, Bernstein analysts also stated that BTC has officially entered a new bull market cycle. The analysts report this bull cycle is currently driven by the recent Bitcoin halving event, which took place on April 20.
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They anticipate the rise of new catalysts that could cause an increase in demand for BTC, which could push the price to a new level. Crypto analyst Michael van de Poppe, on the other hand, does predicted that BTC has likely bottomed between the $63,000 and $65,000 price range.
At the time of writing, the cryptocurrency is trading at $63,865, reflecting a weekly decline of 4.76%. Poppe has proposed one potential reversal on the horizon, predicting that Bitcoin could be in there upward momentum soon.
Featured image created with Dall.E, chart from Tradingview.com