Despite the volatility, Bernstein experts believe that the Bitcoin price surge has just begun as institutional money is pouring in at an unprecedented scale.
Bernstein: "The Bitcoin price rally has just begun"
In its latest report, asset management firm Bernstein affirmed that the Bitcoin price rally has just begun, driven by a surge of institutional money, favorable policies, and growing recognition of BTC.
According to experts Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia, this Bull Run is not just a speculative frenzy but a strategic repositioning of Bitcoin as a global investment portfolio asset. They believe that BTC is gradually replacing Gold as a store of value.
"The increasing acceptance of Bit by banks, institutional investors, corporations, and even governments (directly or through sovereign wealth funds) is helping this asset become a direct competitor to Gold."
Additionally, Bernstein revealed that the US government may be considering issuing debt or selling a portion of its Gold reserves to fund its Bit purchases.
JUST IN: 🇺🇸 $725 billion Bernstein says the US could issue debt or sell some of its Gold reserves to fund their #Bit buys. pic.twitter.com/0NxLlyP6JW
— Bit Magazine (@BitcoinMagazine) February 17, 2025
The Bernstein report also emphasizes that the influx of institutional money is the core driver propelling Bit into a growth cycle. Particularly, the launch of Spot Bit ETFs marked a crucial milestone, opening the floodgates for massive capital from institutional investors and providing a solid foundation for this Bull Run.
According to Bernstein analysts, the $436 million purchase of Spot Bit ETF IBIT shares by Mubadala Investment Company - the sovereign wealth fund of the Abu Dhabi government - is seen as an extremely positive signal for Bit, indicating growing interest from major Middle Eastern players in BTC.
Not only Mubadala, Bernstein also pointed out that a slew of leading financial institutions are heavily investing in Bit ETFs, including Goldman Sachs, DRW Holdings, Susquehanna International Group, Barclays, and Morgan Stanley. These multi-million-dollar investments not only reflect the growing confidence of traditional finance in Bit but also drive the coin's growth in the coming period.
In addition to the influx of institutional money, Bernstein emphasizes that the most crucial boost for Bit is the victory of Donald Trump in the 2024 US Presidential election. The market expects that under Trump, crypto policies will become more open, particularly for Bit, thereby creating favorable conditions for the crypto market to thrive.
Previously, in 09/2024, Bernstein had forecast that if Donald Trump was elected, Bit could reach $80,000 - $90,000 by the end of Q4 2024. However, reality has exceeded expectations, as Bit not only reached the forecast level but also made a spectacular breakthrough, setting a historic ATH of $100,000.
In its latest report, Bernstein predicts that the Bit price could reach $200,000 by the end of 2025, and with the factors presented by Bernstein experts at the current time, this forecast remains entirely feasible.
At the time of writing, the Bit price is fluctuating around $95,400, recording an increase of more than 86% over the past year.
Bit price movement over the past year, screenshot taken on CoinGecko at 01:00 PM on 18/02/2025
Compiled by Coin68
