Key Points
- Bernstein’s analysts predict Bitcoin’s price could reach $1M by 2033.
- MicroStrategy’s ongoing Bitcoin acquisition strategy is noted as a significant market influencer.
Bernstein’s Bold Bitcoin Forecast
In recent times, numerous market analysts and experts have offered their perspectives on the potential price trajectory of Bitcoin (BTC).
Some maintain a conservative outlook, while others have made daring predictions suggesting massive price increases for the leading cryptocurrency. One of the most recent bullish forecasts comes from analysts at the private wealth management firm Bernstein, who have projected that Bitcoin’s price could reach a staggering $1 million within the next decade.
MicroStrategy’s Bitcoin Strategy
Bernstein analysts Gautam Chhugani and Mahika Sapra also suggest that the digital currency could hit a high of $200,000 by 2025. This audacious prediction coincides with Bernstein’s decision to initiate coverage of MicroStrategy Inc (NASDAQ: MSTR), a business intelligence and software firm known for its substantial Bitcoin holdings, with an outperform rating.
MicroStrategy has been consistently acquiring Bitcoin since August 2020, following the onset of the Covid-19 pandemic. The company initially adopted Bitcoin as a reserve asset, but over time, its consistent investment in the cryptocurrency has made MicroStrategy a prominent name within the crypto ecosystem.
The company’s founder and chairman, Michael Saylor, has become a well-known Bitcoin advocate. MicroStrategy’s frequent Bitcoin purchases have led to the company owning approximately 1.1% of the global supply of the cryptocurrency. As of May 1, the company’s Bitcoin portfolio held around 214,400 BTC units, worth an estimated $14.5 billion.
Impact of Bitcoin ETF Demand on BTC Price
MicroStrategy’s Bitcoin strategy has significantly boosted the value of MSTR. The company’s strategy of consistent Bitcoin acquisition has been facilitated by substantial capital inflows, both from debt and equity sources. Notably, the company recently announced plans to sell $500 million worth of convertible senior notes to fund further Bitcoin purchases.
These notes, due in 2032, will be offered in a private sale to qualified institutional buyers, in line with Rule 144A of the Securities Act of 1933. The sale is still subject to market conditions and other factors.
According to Bernstein’s report, MicroStrategy is viewed as an “active leveraged Bitcoin strategy versus passive spot exchange-traded funds (ETFs).” The company’s active Bitcoin strategy is seen as a contributing factor to the higher Bitcoin per equity share currently observed in the market.
Bernstein’s price prediction is based on the growing demand for Bitcoin from spot Bitcoin ETFs. The analysts also believe that a supply shock could drive Bitcoin’s price to the $1 million mark by 2033, with the price expected to reach $500,000 by 2029.
