Bitcoin price is projected to surpass $200,000 in the long run, with network fundamentals and institutional adoption playing a role in accelerating this forecast. The price of Bitcoin (BTC) has experienced a slight increase in the daily chart, indicating a potential recovery. In light of this development and the ongoing volatility in the market, Bernstein Research has released a recent report predicting a bullish rally for BTC.
According to Bernstein’s report, Bitcoin could reach $200,000 by the end of 2025. The firm attributes this bold prediction to the growing institutional adoption and strong network fundamentals of Bitcoin. In the 160-page “Black Book” report, Bernstein highlights how institutional investors are rapidly reshaping the Bitcoin network through increased adoption. Notably, ten global asset managers now control nearly $60 billion in regulated Exchange-Traded Funds (ETFs), a significant increase from the $12 billion recorded in September 2022. As a result, Bernstein expects Wall Street to surpass Satoshi as the top Bitcoin holder by the end of 2024.
The ETF landscape this year has demonstrated strong institutional enthusiasm, with Bitcoin-related products accounting for six of the top ten most successful ETFs launched in 2024. Despite a recent temporary pullback, with $79.1 million in outflows on October 22, total assets under management have exceeded $65 billion. BlackRock, a leading asset manager, has been a major contributor to the rising institutional interest in Bitcoin. The company recently increased its Bitcoin stake by purchasing $1 billion through its iShares Bitcoin Trust. BlackRock’s fund currently holds approximately $24 billion worth of BTC, accounting for about 1.76% of the coin’s total supply. BlackRock CEO Larry Fink believes that Bitcoin now competes with Gold as a distinct asset class and that the upcoming US Presidential elections have no impact on Bitcoin’s price.
JPMorgan has noted that investors are turning to gold and BTC in what they call a “debasement trade” as they prepare for potential “catastrophic scenarios” amidst escalating geopolitical tensions. Hedge fund veteran Paul Tudor Jones has endorsed this viewpoint, revealing that he holds long positions in Bitcoin and other commodities.
Bitcoin’s network fundamentals also indicate strength and caution. As of now, BTC is trading at $66,937, representing a 0.73% increase in the past 24 hours. The daily chart shows a bearish engulfing pattern, which historically has a 60-70% success rate in predicting short-term reversals. Additionally, the futures market has seen Open Interest (OI) approach $40 billion, with prices testing $69,000.
Technical indicators suggest a potential retest of the $60,000 support level, with significant resistance at around $67,500 and $68,000. However, several factors demonstrate the market’s fundamental strength, including a rising hashrate that has reached record highs and increased active addresses since mid-September. Network fees have also increased, indicating substantial transaction activity. Furthermore, options traders exhibit strong bullish sentiment, with Open Interest focusing on $80,000 strike prices for November expiry.
Overall, the combination of institutional adoption and strengthening network fundamentals is expected to propel Bitcoin towards a historic bullish rally in the near future.
