Bernstein
has
doubled
down
on
its
optimistic

Bitcoin
price
projections,
raising
its
long-term
forecast
to
$1
million
by
2033,
driven
by
unprecedented
demand
and
constrained
supply.

Bernstein
analysts
also
revised
their
predictions
for
the
current
cycle
and
now
project
the
flagship
crypto
to
hit
$200,000
by
the
end
of
2025,
up
from
its
earlier
estimate
of
$150,000.
The
firm
also
predicted
Bitcoin
will
climb
to
$500,000
by
2029.

Bernstein
attributed
the
growth
expectations
to
the
increasing
demand
for
Bitcoin
via
multiple
avenues,
particularly
the
newly
launched
ETFs
and
the
trend
of
corporations
adding
Bitcoin
to
their
treasuries.
The
firm
said
the
rising
demand
combined
with
the
shrinking
supply
points
to
remarkable
potential
for
growth.

 

Despite
Bitcoin’s
recent
struggle
to
maintain
its
position
above
$67,000,
with
prices
slipping
to
around
$66,850,
Bernstein’s
optimistic
forecast
highlights
the
long-term
potential
of
the
crypto
market.

The
analysts
believe
that
the
broader
economic
environment,
including
easing
US
inflation
and
shifting
political
attitudes
towards
cryptocurrencies,
supports
a
positive
outlook
for
Bitcoin
and

MicroStrategy
alike.

MicroStrategy
coverage

As
part
of
its
bullish
outlook,
Bernstein
initiated
coverage
of
MicroStrategy,
assigning
it
an
outperform
rating
with
a
price
target
of
$2,890.
The
Virginia-based
company,
known
for
its
significant
Bitcoin
holdings,
closed
at
approximately
$1,484
on
June
14.

MicroStrategy,
which
holds
about
214,400
bitcoins
worth
approximately
$14.5
billion,
has
transformed
from
a
small
software
firm
into
a
major
player
in
the
crypto
market
over
the
past
four
years.
The
company
adopted
Bitcoin
as
a
reserve
asset
in
2020,
and
its
founder
and
chairman,

 

Michael
Saylor,
has
been
a
prominent
advocate
for
the
digital
currency.

Bernstein
analysts
Gautam
Chhugani
and
Mahika
Sapra
highlighted
Saylor’s
strategic
approach
in
positioning
MicroStrategy
as
a
leading
Bitcoin
enterprise,
writing:

“Michael
Saylor
has
become
synonymous
with
brand
Bitcoin,
and
MicroStrategy
has
positioned
itself
as
an
active
leveraged
Bitcoin
strategy
versus
passive
spot
ETFs.”

According
to
the
firm,
this
active
strategy
has
resulted
in
a
higher
Bitcoin
per
equity
share
compared
to
passive
approaches.

MicroStrategy
stacking
Bitcoin

MicroStrategy’s
long-term
financial
strategy
includes
convertible
debt,
which
allows
the
company
to
capitalize
on
Bitcoin’s
potential
upside
while
minimizing
liquidation
risks.

The
company
has
raised

billions
of
dollars
via

multiple
debt
offerings
to
increase
its
BTC
holdings
in
recent
months.

The
firm
most
recently
proposed
a

$500
million
debt
sale
of
convertible
notes
on
June
13
to
further
boost
its
Bitcoin
reserves.
It
later
raised
the
amount
to
$700
million
on
June
14.

 

Bernstein
believes
that
MicroStrategy’s
proactive
stance
and
substantial
Bitcoin
holdings
position
it
to
benefit
significantly
from
the
projected
growth
in
crypto
value
over
the
coming
decade.

Mentioned
in
this
article

Go to Source
Author: Assad Jafri

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