Bernstein, a notable financial firm, has raised its Bitcoin price forecast for the end of 2025. In an ambitious projection, Bernstein anticipates BTC reaching $200,000 by 2025 and potentially hitting $1 million by 2033. This prediction arises amid ongoing debates about the cryptocurrency’s future trajectory.
Bitcoin Bull Run Continues
Despite some bearish analysts claiming that the initial Bitcoin ETF issuance surge was driven by retail investors, Bernstein suggests this view misses key upcoming developments. The firm believes Bitcoin ETFs are on the verge of global approval, seeing institutional adoption as a “trojan horse” for broader acceptance and long-term investment in Bitcoin.
Bitcoin Experiences Short-Term Dip
This major forecast comes as Bitcoin has seen a dip in recent months, hitting a one-month low due to significant outflows from recently launched ETFs and expectations of higher US borrowing costs. Over the last 24 hours, Bitcoin’s price rose by around 2%, though it remains down by 7% over the past 30 days. Currently, BTC is trading at an average price of $66,027, with a 24-hour trading volume down 41% to $19.88 billion.
ETF Outflows and Market Sentiment
CoinShares data indicates that $600 million was withdrawn from digital-asset products last week, marking the highest outflow since March. Rising inflation has led traders to temper their expectations for Federal Reserve interest-rate cuts this year, challenging speculative investments like cryptocurrencies.
Ethereum Performance and Market Trends
Ethereum (ETH), the largest altcoin, has seen a 3% increase over the past 7 days, trading at an average price of $3,586. Traditional markets have outperformed Bitcoin this quarter, reversing the trend from earlier in the year when digital assets outpaced stocks and bonds. Caroline Bowler, CEO of BTC Markets Pty, notes that “crypto is becoming increasingly exposed to macro triggers” but remains optimistic about the long-term outlook.
Impact of New Coin Launches
Market sentiment was further dampened by the poor performance of new coin launches. The ZK token, a highly anticipated project on the Ethereum blockchain, dropped by a third after its listing on Monday, continuing the trend of sharp selloffs in recent high-profile launches.
Not a financial advice.