crypto-market-cap-to-hit-7-5-trillion-next-year/” rel=”nofollow”>Bernstein Analysts Gautam Chhugani and Mahika Sapra recently revised their price targets for bitcoin in their latest market report, which also initiated coverage on bitcoin-a-better-option-than-mstr-stock/” rel=”nofollow”>Microstrategy. These analysts also outlined factors that they believe could contribute to the exponential rise in btc price.
bitcoin will reach $200,000 and then $1 million
Chhugani and Sapra predicted in the report that btc will reach a cycle high of $200,000 by 2025 and that the flagship cryptocurrency will hit $1 million by 2033. Bernstein had bitcoin-to-hit-150k-by-2025-financial-firm/” rel=”nofollow”>previously predicted that bitcoin would reach $150,000 in 2025. However, these analysts have now revised their targets and have alluded to the institutional demand for btc as one of the reasons why they believe the flagship cryptocurrency can reach such heights.
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The research company predicts that bitcoin-spot-etfs-inflow/” rel=”nofollow”>bitcoin Spot ETF will continue to see impressive demand and that bitcoin under management could reach $190 billion by 2025, a significant increase from the $60 billion in btc that fund issuers already have under management.
In other words, these analysts expect btc price succumb to the dynamics of supply and demand, considering that the bitcoin in circulation will surely reduce drastically as these bitcoin Spot ETFs continue to accumulate a significant amount of the crypto token for their respective ETFs. What's more, two bitcoin-halving-2024-complete-what-expect/” rel=”nofollow”>bitcoin Halvings will occur before 2033, which will further reduce miners supply and thus supporting his base case of btc reaches $1 million.
MicroStrategy will benefit from btc growth
These Bernstein analysts also initiated coverage on bitcoin/” rel=”nofollow”>Microstrategy with a superior performance rating. They predict that the software company's shares can rise to $2,890 thanks to its exposure to btc. An increase to $2,890 represents roughly a 95% increase for MicroStrategy stock, which is currently rated around 1,500 dollars.
The research firm noted that MicroStrategy is committed to “building the world's largest bitcoin company.” This has already paid off so far, with Chhugani and Sapra stating that the software company has transformed from a “small software company to the largest btc holding company” since August 2020 (when it started accumulating btc).
MicroStrategy already has bitcoin/” rel=”nofollow”>1.1% of total bitcoin supply, with holdings worth around $14.5 billion. The company's btc holdings are expected to rise soon enough, as they did recently Announced plans to offer $500 million in convertible senior notes. Part of the proceeds from the proposed sale will be used to purchase additional btc.
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Berstein highlighted how the company's co-founder bitcoin-hodl-8-million-price/” rel=”nofollow”>Michael Taylor has become synonymous with the bitcoin brand and that the company's position as a leading bitcoin company has helped attract “capital at scale (both debt and equity) for active activity.” bitcoin–btc/” rel=”nofollow”>bitcoin acquisition strategy.” In dollar terms, Bernstein noted that MicroStrategy's bitcoin net asset value (NAV) per share “has increased nearly fourfold, outpacing the 2.4x growth of bitcoin's spot price.”
“We believe MSTR's long-term convertible debt strategy allows it sufficient time to realize the benefits of bitcoin, with limited liquidation risk to its bitcoin on the balance sheet.” Chhugani and Sapra added.
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