Bernstein Raises His 2025 Bitcoin Price Target to $150 Thousand!

The cryptocurrency market has witnessed Bitcoin reaching new heights this year. Although the cryptocurrency has lost ground in recent days, analysts expect a lot from BTC in the long term. Bernstein analysts increased their price targets for Bitcoin from $150,000 to $200,000 by the end of 2025.

Bernstein raised the price of Bitcoin and explained why!

cryptokoin.com As you follow from , Bitcoin raced to the top after the SEC approved spot Bitcoin ETFs. Even though it declined after this run, it still continues to show strength. Although analysts predict a decline in the short term, they expect more from Bitcoin in the long term. Analysts at research and brokerage firm Bernstein raised their price target for BTC from $150,000 to $200,000 by the end of 2025.

This goal stems from the expectation of unprecedented demand through spot Bitcoin ETFs managed by the world’s leading asset managers such as BlackRock, Fidelity and Franklin Templeton, Gautam Chhugani and Mahika Sapra wrote in a note to clients. They also stated that the assets under management, which are 60 billion dollars today, will reach approximately 190 billion dollars. In this context, analysts made the following assessment:

We believe US-regulated ETFs are a turning point for crypto that brings structural demand from traditional capital pools. Approximately $15 billion in net new flows were generated by ETFs. We expect Bitcoin ETFs to account for ~7% of Bitcoin in circulation by 2025 and ~15% of Bitcoin supply by 2033.

Spot Bitcoin ETF projections. Photo: Bernstein.

“ Bitcoin is in a new bull cycle!”

The “limited” supply of Bitcoin was another factor that analysts drew attention to. Miners’ block subsidy reward dropped from 6.25 BTC to 3,125 BTC with the halving in April. This is an issue that analysts support. This means that the new BTC supply dropped from an average of 900 BTC per day after the halving to 450. Analysts come to the following conclusion on this issue:

We believe Bitcoin is in a new bull cycle. ‘Halving’ presents a unique situation where miners’ natural Bitcoin selling pressure is reduced by half (or even more as they stock up more in anticipation) and new catalysts for Bitcoin demand emerge, leading to exponential price movements.

BTC price projection for 2025 and beyond

Looking at previous cycles, analysts say Bitcoin rose to nearly 5 times its marginal cost of production in 2017. Subsequently, he states that it made a base at 0.8 times the marginal cost in 2018. Analysts note that it has increased to approximately 2.3 times the current marginal cost of production in 2021. He also adds that it will then decrease to 0.7 times the marginal cost in 2022, clearing out inefficient and unprofitable miners. In this context, Chhugani and Sapra point to the following prices:

For the 2024-27 cycle, we expect Bitcoin to rise to 1.5x its marginal cost of production. This implies a high of $200,000 (2.8x appreciation from today’s BTC price) by mid-2025.

Bitcoin prediction price cycle. Photo: Bernstein.

Bernstein analysts’ base-case assumptions beyond next year are for Bitcoin to hit $500,000 by the end of 2029 and $1 million by 2033.