Bernstein predicts that Bitcoin will surge to $200,000 by the end of 2025, driven by increasing institutional adoption and improving regulatory environments, according to insights shared by VanEck’s head of digital assets research, Matthew Sigel.
The forecast comes from Bernstein’s latest “Black Book,” titled “From Coin to Compute: The Bitcoin Investing Guide,” which explores Bitcoin’s role in financial portfolios and the compute economy.
The report emphasizes Bitcoin’s potential as a long-term investment option, supported by its growing popularity among institutional investors.
Institutional Adoption
One key finding in the report is the rising adoption of Bitcoin among institutional investors, who are managing liquidity and volatility risks associated with the asset.
Bernstein compares Bitcoin’s liquidity profile to traditional assets, highlighting its appeal as a hedge against inflation and economic instability.
The report also discusses strategies employed by institutions to mitigate Bitcoin’s volatility risks, such as adjusting portfolio allocations and liquidity buffers.
The Compute Economy
Bernstein’s analysis focuses on Bitcoin’s evolving role in the “compute economy,” highlighting its potential beyond being a store of value.
The report suggests leveraging Bitcoin’s blockchain infrastructure for computational tasks could drive technological advancements.
Global miners are scaling up computational capabilities, expanding mining pools across regions, which could contribute to Bitcoin’s price appreciation.
Regulatory Challenges
Despite regulatory uncertainties, Bernstein’s report suggests that clear frameworks could boost Bitcoin’s institutional adoption.
Regulatory clarity, especially in the US, could increase institutions’ confidence in Bitcoin, leading to greater exposure to the asset.
A clearer regulatory environment could be a catalyst for Bitcoin reaching the projected $200,000 price target, according to Bernstein’s analysis.
