Bernstein Analysts Forecast Bitcoin Could Hit 1 Million by 2033

Bernstein Analysts Make Bold Prediction: Bitcoin Could Hit $1 Million by 2033


Ruholamin Haqshanas
Updated:
June 14, 2024 08:22 EDT
|
2 min read


Bitcoin has been forecasted to potentially surge to $1 million by 2033, with a projected peak of $200,000 by 2025, as per analysts at Bernstein.
This prediction comes as Bernstein begins coverage of MicroStrategy, a software development company and the largest corporate holder of Bitcoin.
The research report has given an outperform rating to MicroStrategy, which currently owns 1.1% of the global supply of the leading cryptocurrency, amounting to around $14.5 billion.
MicroStrategy Emerges as a Key Player in the Cryptocurrency Space
In just four years, MicroStrategy has undergone a significant transformation from a small software firm to a major player in the crypto sector.
The company’s founder and chairman, Michael Saylor, has been instrumental in establishing MicroStrategy as a prominent Bitcoin-focused entity.
Saylor’s leadership has attracted substantial capital, both in the form of debt and equity, enabling the company to execute an active Bitcoin acquisition strategy.
MicroStrategy currently holds 214,400 Bitcoin, which it started accumulating in 2020 as a reserve asset.
Bernstein has set a price target of $2,890 for MicroStrategy, while the company’s shares closed at approximately $1,484 on the Nasdaq exchange.
Analysts Gautam Chhugani and Mahika Sapra have highlighted MicroStrategy’s dynamic leveraged Bitcoin strategy, which sets it apart from passive spot exchange-traded funds (ETFs).
Over the past four years, MicroStrategy’s proactive approach has resulted in a higher amount of Bitcoin per equity share.
Bernstein’s price forecast for Bitcoin is driven by the unprecedented demand from spot ETFs and the limited supply of the cryptocurrency.
The analysts now predict that Bitcoin could potentially reach $500,000 by 2029, with the 2025 estimate revised from $150,000.
MicroStrategy’s long-term convertible debt strategy enables the company to seize the potential upside of Bitcoin while mitigating the liquidation risk associated with the cryptocurrency on its balance sheet.
In a recent development, MicroStrategy has announced a $500 million debt sale of convertible notes to further strengthen its Bitcoin holdings.
This move demonstrates the company’s dedication to expanding its Bitcoin portfolio and leveraging its position in the crypto market.
Corporate Bitcoin Holders Begin to Reap Benefits
Several major corporate investors in Bitcoin, including Microstrategy, have already witnessed significant profits.
Based on data compiled by Saylortracker, at current market prices of around $67,000, MicroStrategy’s position now boasts a total valuation exceeding $14.59 billion.
This indicates that the company has unrealized profits of nearly $6.5 billion on paper – representing a gain of almost 104% year-to-date from an investment initiated under Saylor back in 2020.
MicroStrategy’s successful Bitcoin strategy has also prompted other public companies to consider adding Bitcoin to their balance sheets.
In April, Metaplanet revealed its decision to incorporate Bitcoin into its treasury assets for various reasons.
Primarily, it aims to reduce its exposure to the Japanese yen, which has been significantly affected by Japan’s low-interest-rate environment.
In a shareholder update, Metaplanet expressed concerns about the yen’s vulnerability and highlighted Bitcoin’s potential as a hedge against inflation, a tool for macroeconomic resilience, and a source of long-term capital growth.
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