Bernstein Research forecasts that Bitcoin could reach $200,000 by 2025.

Bitcoin, the world’s largest cryptocurrency, is projected to reach $200,000 by the end of 2025, according to Bernstein Research. This price target has been revised upwards from the previous estimate of $150,000 in 2024. The forecast comes amid a backdrop of several significant factors that are expected to drive Bitcoin’s price growth, including the 2024 U.S. presidential election, institutional demand, and evolving regulatory frameworks.

The election of Donald Trump, who won the presidential race in early November, has sparked speculation that pro-crypto figures might fill key roles in the U.S. government, including the Securities and Exchange Commission (SEC) and the Department of Treasury. For instance, prominent figures such as Howard Lutnick, CEO of Cantor Fitzgerald, and Scott Bessent, founder of Key Square Group, are among the candidates who could replace Janet Yellen as Treasury Secretary, which would be seen as favorable for Bitcoin.

In addition, institutional interest in Bitcoin is expected to continue driving its price. The growing adoption of Bitcoin-related products, such as exchange-traded funds (ETFs), by major financial institutions is seen as one of the key catalysts for price appreciation. For example, Goldman Sachs has significantly increased its investment in BlackRock’s Spot Bitcoin ETF, which has raised up to $710 million.

A major regulatory development in the U.S. has also contributed to the bullish outlook. U.S. Senator Cynthia Lummis, a vocal advocate for Bitcoin, has introduced the Bitcoin Act and a Bitcoin Strategic Reserve plan, which aims to position Bitcoin as a financial reserve asset alongside gold. These proposals are expected to pave the way for Bitcoin to become more entrenched in mainstream financial systems.

Looking even further into the future, Bernstein’s analysts project that Bitcoin could experience even more significant gains in the next decade. They forecast that by the end of 2029, Bitcoin could rise to over $500,000, with the potential to reach $1 million by 2033. This price surge is attributed to the increasing role of Bitcoin ETFs, which are expected to account for roughly 15% of Bitcoin’s circulating supply by 2033.

Since the launch of Bitcoin spot ETFs in mid-January 2024, these financial products have seen strong inflows, with approximately $28 billion invested. The success of these ETFs in the U.S. has spurred other countries to introduce similar products in their respective markets, further fueling global demand for Bitcoin.

Overall, the combination of institutional adoption, favorable regulatory changes, and the increased availability of Bitcoin-related financial products suggests that Bitcoin’s price trajectory will continue to rise in the coming years, with some analysts predicting even higher valuations in the long term.