Coinspeaker
Bernstein Predicts Bitcoin (BTC) Price to Reach $1M by 2033
In the last few months, several analysts and market experts have shared their opinions on how high the price of Bitcoin (BTC) could go.
While a significant number of these experts are quite conservative with their speculations, others have been audacious, projecting huge price levels for the top cryptocurrency. One of the latest bullish calls came from Analysts from private wealth management firm Bernstein who said the price of Bitcoin might soar as high as $1 million within the next decade.
MicroStrategy’s Bitcoin (BTC) Acquisitions Strategy
Gautam Chhugani and Mahika Sapra from Bernstein also believe that the digital currency could reach a circle-high of $200,000 by 2025. This bold prediction comes as Bernstein initiated coverage of MicroStrategy Inc (NASDAQ: MSTR) with an outperform rating. The shares of the Tysons Corner, Virginia-based firm were placed at a $2,890 price target. However, it was only around $1,484 at the close of the market on Thursday.
MicroStrategy, the popular business intelligence and software firm, ranks as one of the Wall Street firms with the largest Bitcoin holding. The firm has engaged in consistent acquisition of the top cryptocurrency since August 2020 when the Covid-19 pandemic hit the world. At that time, MicroStrategy adopted Bitcoin as a reserve asset but it has grown over time to make the firm a household name in the crypto ecosystem.
In today’s world, the company’s founder and chairman Michael Saylor has become synonymous with Bitcoin. The frequent purchases have earned MicroStrategy ownership of 1.1% of the global supply of the world’s largest cryptocurrency by market capitalization. As of May 1, the firm’s Bitcoin portfolio holds as much as 214,400 BTC units valued at approximately $14.5 billion.
Spot Bitcoin ETF Demand to Drive BTC Price
Additionally, MicroStrategy’s Bitcoin strategy has triggered an exponential growth in MSTR value. The software firm’s Bitcoin acquisition strategy is constantly kept active by the at-scale capital, both debt and equity, that are attracted to it. Markedly, the firm recently announced its intention to sell $500 million worth of convertible senior notes to fund further Bitcoin acquisitions.
According to MicroStrategy, these notes will be due in 2032 and will be offered in a private sale to qualified institutional buyers, in accordance with Rule 144A of the Securities Act of 1933. It is still subject to the state of the market and other conditions.
In Bernstein’s report, it was stated that MicroStrategy is placed as an “active leveraged bitcoin strategy versus passive spot exchange-traded funds (ETFs).” MicroStrategy’s active Bitcoin strategy was acknowledged as a contributor to the higher Bitcoin per equity share that is the current state of the market.
Bernstein’s price forecast comes from recognizing the growing demand for the crypto from spot Bitcoin ETFs. The supply shock is also perceived as a catalyst to drive BTC prices to the $1 million level by 2033. These analysts believe that the price of the coin should hit $500,000 by 2029.
