Bernstein analysts have increased their long-term Bitcoin price forecast to $1 million by 2033 due to high demand and limited supply. They have also adjusted their predictions for the current cycle, expecting Bitcoin to reach $200,000 by the end of 2025 and $500,000 by 2029. This positive outlook is driven by the growing demand for Bitcoin, with the introduction of ETFs and companies like MicroStrategy adding Bitcoin to their treasuries.
MicroStrategy, a Virginia-based company known for its significant Bitcoin holdings, has been assigned an outperform rating by Bernstein with a price target of $2,890. MicroStrategy has about 214,400 bitcoins valued at around $14.5 billion and has become a major player in the crypto market since adopting Bitcoin as a reserve asset in 2020. The company’s founder, Michael Saylor, has been a vocal supporter of Bitcoin, positioning MicroStrategy as a key player in the crypto space.
Bernstein analysts Gautam Chhugani and Mahika Sapra praised Saylor’s strategic vision in making MicroStrategy a leading Bitcoin enterprise. They noted that MicroStrategy’s active leveraged Bitcoin strategy has resulted in higher Bitcoin per equity share compared to passive approaches. The company’s use of convertible debt allows it to capitalize on Bitcoin’s potential while minimizing risks.
MicroStrategy has been proactive in increasing its Bitcoin holdings, recently announcing a $700 million debt sale of convertible notes to further boost its reserves. Bernstein believes that MicroStrategy’s forward-thinking approach and substantial Bitcoin holdings position it well to benefit from the expected growth in crypto value over the next decade.
Overall, Bernstein’s optimistic forecast for Bitcoin and MicroStrategy reflects a positive outlook for the crypto market, driven by increasing demand, limited supply, and strategic investments in Bitcoin. The firm’s analysis highlights the potential for significant growth in both Bitcoin’s price and the value of companies like MicroStrategy in the years to come.