Bitcoin could soar to $200,000 by the close of 2025, as the cryptocurrency steps into what Bernstein Research describes as “a new institutional phase,” according to an October 22 report.
Bernstein’s comprehensive 160-page analysis explains how Bitcoin mining is expected to undergo significant consolidation in the coming years, a point echoed by Matthew Sigel, VanEck’s head of digital asset research, in a post shared on October 23.
The report highlights that major global asset managers are increasingly involved in Bitcoin, with about $60 billion wrapped in regulated exchange-traded funds (ETFs), a dramatic rise from $12 billion in September 2022. By the end of 2024, Bernstein expects Wall Street to surpass Satoshi Nakamoto as the largest holder of Bitcoin.
In 2024, Bitcoin has been a dominant force in the ETF market, with six of the top ten launches featuring the cryptocurrency, according to Nate Geraci, president of The ETF Store, who posted this data on the X platform.
Top analysts from firms such as Bernstein, JPMorgan, and hedge fund veteran Paul Tudor Jones have become more optimistic about Bitcoin, especially as the U.S. presidential election approaches. Investors are increasingly turning to Bitcoin and gold as safe-haven assets amid global uncertainties, according to JPMorgan’s October 3 report.
This “debasement trade” refers to rising demand for gold and Bitcoin driven by ongoing geopolitical instability, high inflation concerns, and persistently large government deficits across key economies, JPMorgan noted.
On October 22, Jones stated that he’s bullish on Bitcoin and other commodities, anticipating increased inflation after the U.S. presidential election. “I’m likely holding a mix of gold, Bitcoin, commodities, and tech stocks, while steering clear of fixed income,” Jones remarked in an interview with CNBC’s Squawk Box.
Meanwhile, Bitcoin miners are set for a comeback following the halving event in mid-2024, which slashed mining rewards from 6.25 BTC to 3.125 BTC per block. This consolidation, fueled by increased energy demand for AI technology, presents a growth opportunity for mining companies, Bernstein predicts.
As AI continues to drive up the need for computational power, some miners are capitalizing on this shift. Luxor CEO Nick Hansen estimates miners could earn between $2 and $3 per kilowatt-hour from AI compared to just $0.15 to $0.20 from Bitcoin mining. Companies like Core Scientific, Hive Digital Technologies, and Hut 8 are already embracing AI as a new revenue stream.
For more news, find me on Twitter Giannis Andreou and subscribe to My channels Youtube and Rumble
What is your opinion on this particular topic? Leave us your comment below! We are always interested in your opinion!
