A bold move by Bernstein has caught the attention of the crypto world. Bernstein, a prominent asset manager with $725 billion in assets under management, is urging investors to increase their exposure to Bitcoin and cryptocurrencies “as soon as possible.”
JUST IN: $725 billion asset manager Bernstein urges investors to add exposure to #Bitcoin and crypto “as soon as possible.”
— Watcher.Guru (@WatcherGuru) November 11, 2024
This recommendation has come at a time when the cryptocurrency market is rapidly evolving due to increased institutional interest in digital assets, where Bitcoin is soaring as high as $84,000 per coin.
Bernstein’s Confidence in Bitcoin’s future
Due to rise in global inflation, it is pushing investors to seek alternatives to traditional assets, positioning Bitcoin as a “digital gold” and a hedge against economic instability. This trend enhances Bitcoin’s attractiveness as a store of value.
With the increased institutional adoption, Bernstein estimates that assets in these ETFs could grow from $60 billion to $190 billion by 2025, significantly increasing demand and liquidity in the market.
Bitcoin’s supply mechanics, particularly the halving events that reduces the rate of new Bitcoin creation, are expected to create upward pressure on prices. The latest having has cut the daily supply from 900 BTC to 450 BTC, which historically has led to substantial price increases following such events.
Companies like MicroStrategy have heavily invested in Bitcoin, holding approximately 1.1% of the total supply. Their strategy of acquiring Bitcoin through convertible debt reduces liquidation risks and reflects a growing corporate confidence in the cryptocurrency’s long-term value.
These factors collectively contribute to Bernstein’s bullish outlook, driven by sustained institutional demand and favorable macroeconomic conditions.
Price Prediction by Bernstein
Bernstein analyst projects that Bitcoin could surge up to $200,000 by 2025, a figure they consider conservative given the growing institutional demand and the scarcity of the Bitcoin. The firm anticipates that the launch of spot Bitcoin exchange-traded funds (ETFs) will further fuel its growth and would attract institutional investors who have been hesitant to enter the crypto world.
Moreover, Bernstein also predicts that the Bitcoin could reach a staggering price of $1 million by 2033. This long-term outlook is supported by the increasing adoption of cryptocurrencies as a hedge against inflation and economic uncertainty. As traditional market faces volatility, Bitcoin’s appeal as a store of value continues to gain traction.
In addition to Bernstein’s bullish outlook, the broader crypto currency market is witnessing significant developments. Major financial institutions like BlackRock and Fidelity are entering the space, indicating a shift towards greater acceptance and legitimacy for digital assets.
With Trump winning the 2024 presidential election, the community anticipates regulatory clarity through which the investor confidence is expected to increase, paving way for further growth in the crypto sector. Berstein’s insights reflect an optimistic future for Bitcoin and cryptocurrencies, urging investors to act swiftly as the opportunities come up.
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