In Short
- Bernstein predicts Bitcoin could reach $1 million by 2033, with a potential stop at $200,000 by next year.
- MicroStrategy is seen as a leveraged bet on Bitcoin rather than a traditional investment, playing a key role in Bernstein’s bullish outlook.
- The forecast is driven by strong demand from spot ETFs and Bitcoin’s limited supply, indicating significant growth potential.
With $725 billion in assets under management, prominent asset manager Bernstein believes that the price of Bitcoin may hit $1 million by 2033, with a potential pause of around $200,000 as early as next year.
The optimistic projection adheres to Bernstein’s “outperform” rating from the time it started covering MicroStrategy, the largest corporate Bitcoin holder, which is a software company.
As of this writing, MicroStrategy is valued at around $14.5 billion, or 1.1% of the total amount of Bitcoin in circulation.
Also read: How Much of the World’s Money Is Held in Bitcoin?
According to a Bernstein research report, the company has changed over the last four years from being a little-known software company to one of the pioneers in the Bitcoin field.
Bernstein’s coverage of MicroStrategy is more of a “leveraged” wager on Bitcoin than it is an investment in the company’s fundamentals. According to the research, MicroStrategy presents itself as an active leveraged bitcoin approach as opposed to passive spot exchange-traded funds (ETFs).
Bernstein’s bullish prediction for Bitcoin’s price is based on the exceptional demand from spot ETFs and the coin’s limited supply, which could propel the cryptocurrency’s price to $500,000 by 2029—a higher figure than their earlier projection of $150,000 for 2025.
Bernstein claims that MicroStrategy is attempting to minimize the danger of liquidating its cryptocurrency assets while maximizing possible gains on Bitcoin through the long-term convertible debt plan.
To increase its holdings of Bitcoin, the business has suggested selling $500 million worth of convertible notes as debt. The positive long-term picture for Bitcoin is growing as more and more institutions accept the digital currency.
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Thanks in part to spot Bitcoin ETFs, the biggest asset managers in the world, like as Fidelity and BlackRock, are now providing individual investors with simple access to Bitcoin.
According to Bernstein, these recently discovered “mainstream” inflows are what are driving the present gains in the price of Bitcoin.
As the largest publicly traded Bitcoin holder and an indirect, leveraged wager on the price of Bitcoin, analysts predict MicroStrategy will continue to have an advantage. Its benefit over spot ETFs, however, is still unknown.
“Compared to spot ETPs, we believe that MicroStrategy shares continue to offer investors looking to gain exposure to Bitcoin several significant benefits,” said Lance Vitanza, an analyst with TD Cowen.
“We think a significant premium [on Bitcoin] will remain justified, even with spot Bitcoin ETPs now serving as potential substitutes.”
Also Read: Difference Between Bitcoin and Credit Card Transactions
