3 reasons why Bitcoin could still reach $150,000 by 2025: Bernstein

• Bitcoin will still reach $150,000 by 2025, Bernstein reaffirmed in a new note.
• ETF and spot bitcoin demand remained strong, analysts wrote.
• The mining sector has yet to witness major turmoil since the bitcoin halving in April.

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Bitcoin is recovering again and is back on track to reach $150,000 next year, Bernstein reaffirmed in a note on Monday.

The company’s senior analyst Gautam Chhugani has been projecting for months that the apex token will reach this price target and explained that bitcoin’s recent drop to $57,000 did not signal a permanent contraction.

“Investors ask us if anything has changed in our $150K Bitcoin price view and if the post-halving price correction has affected our conviction. In fact, we feel even better about our Bitcoin decision,” he and analyst Mahika Sapra wrote.

This represents a 137% increase from current levels.

First, flows into spot bitcoin ETFs continuedand have already represented half of the volumes expected by Bernstein for the entire year 2024 – despite having existed for less than four months.

“The launch of the Bitcoin ETF was the most successful ETF launch ever, and we expect continued ETF-driven demand throughout the rest of the year, led by growing asset allocation to Bitcoin from private banks, wealth managers, funds pension and sovereigns. Overall, between 2024 and 2025, we expect around US$70 billion in new flows,” the note said. Since their creation, around 12 billion dollars have been invested in these funds.

Last week may have worried investors that this trend was reversing, as the funds experienced 8 days of outflows. However, not only is this over, but even the Grayscale Bitcoin Trust recorded its first day of inflows, ending one of the long-lasting headwinds for the ETF market.

Second, Financial Accounting Standards Board rule updates regarding cryptography are driving corporate interest in bitcoin, Bernstein said. For example, Block announced the monthly purchase of the token, despite already owning around US$840 million in bitcoin.

Bernstein also noted strong demand for direct spot bitcoin purchases, which helped offset recent ETF outflows.

Third, Bitcoin halving in April has not yet significantly hampered crypto mining activity. During this four-year event, the amount of tokens awarded to successful miners is reduced in order to reduce the supply of bitcoin.

Although the situation was designed to make mining more competitive, the amount of computing resources required for mining has not grown significantly for now.

Meanwhile, mining equipment prices remain at moderate levels even as the value of bitcoin rises. This gives the sector a greater profitable capacity and keeps the current players dominant in the space.

“Overall, healthy Bitcoin demand and continued discipline in the Bitcoin mining cycle allowing the Bitcoin party to last longer this time around. $150,000 in 2025 is at stake,” Chhugani wrote.

Bernstein is not alone in maintaining his optimistic decision. Last week, Standard Chartered reported that bitcoin would still reach $150,000 this year, although not before correcting to $50,000.

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