Bitcoin To $200,000 By 2025 End Is ‘Conservative’ Target, Analyst Predicts

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As a seasoned researcher with over two decades of experience in the financial industry, I find Bernstein’s $200,000 prediction for Bitcoin by 2025 end to be an intriguing prospect. My personal journey has taken me through the dot-com bubble, the housing market crash, and now the digital asset revolution, making me keenly aware of the transformative power of disruptive technologies like Bitcoin.

Based on predictions from a reputable research company, Bernstein, a price of $200,000 for Bitcoin (BTC) by the year 2025 might be considered as a more modest forecast.

Bitcoin To $200,000 By 2025 End?

Despite Bitcoin currently hovering slightly beneath its record peak of $73,737, analysts from Bernstein suggest that their projected price of $200,000 by 2025 could be an underestimate.

In a recent client update, analyst Gautam Chhugani at Bernstein predicted that Bitcoin could reach $200,000 during this market cycle. He highlighted the impact of its restricted supply of only 21 million coins, especially when considering increasing levels of U.S. national debt. Furthermore, he stated:

For those who remain skeptical about Bitcoin, it’s worth considering the appeal of a digital asset with a capped supply in a time when U.S debt has skyrocketed to an unprecedented $35 trillion and the danger of inflation remains high. If you’re already a fan of gold, you might find yourself even more drawn to Bitcoin.

Chhugani proposed an alternative route for investors who are wary of investing directly into Bitcoin (BTC). By considering companies such as MicroStrategy or Robinhood, they could indirectly benefit from the asset’s price fluctuations since these firms have significant holdings in BTC.

Increased curiosity among institutions about Bitcoin ETFs adds weight to the argument that a Bitcoin price surge might happen soon.

According to a recent report submitted to the U.S. Securities and Exchange Commission (SEC), JP Morgan has declared holding approximately $272 million in Bitcoin Exchange-Traded Funds (ETFs) by the end of Q3 2024. As of now, the combined total net investment in U.S.-based spot Bitcoin ETFs amounts to a staggering $21.15 billion, as per data from SoSoValue.

Several Metrics Point To Potential  BTC Rally

As Bitcoin Exchange-Traded Funds (ETFs) are drawing more institutional investments, various indicators suggest a higher likelihood of a Bitcoin price surge by the end of the year.

As an analyst, I’ve observed a significant rise in the mining difficulty of Bitcoin. Just yesterday, it spiked to approximately 95.67 trillion hashes, which represents a 3.9% increase from October 22. On a year-to-date basis, this difficulty has increased by roughly 30%. In January, it was around 72 trillion hashes, but now we’re seeing numbers exceeding 95 trillion hashes.

Similarly, the Bitcoin mining hashrate recently jumped to a new ATH of 700 exahashes per second (EH/s). 

In simpler terms, for people who aren’t familiar, Exahash is a unit used to quantify the computational strength needed to process and verify transactions on a blockchain system that functions through a Proof-of-Work (PoW) system. This measurement indicates how much computational power is being employed in mining and recording these transactions.

An increase in Bitcoin’s mining complexity and processing power (hashrate) usually suggests a positive long-term outlook for BTC. This is because it demonstrates enhanced network security and increased miner conviction about the asset’s future earnings potential – two factors that underscore robust interest in the digital currency.

Furthermore, a fresh analysis has highlighted an impressive increase in Bitcoin ownership by ‘buying accounts,’ implying that long-term investors are still amassing cryptocurrency with the expectation of capitalizing on potential price escalations in the future.

Yet, despite efforts, Bitcoin has yet to convincingly surpass the significant barrier at around $70,000. Currently, its price stands at roughly $66,000, marking a decrease of about 2.2% over the past day.

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2024-10-24 14:12