Bitcoin’s price is projected to rally above $200,000 in the long term, with network fundamentals and institutional adoption playing a key role in accelerating this projection. According to a recent report by Bernstein Research, Bitcoin could reach $200,000 by the end of 2025. The report highlights the increase in institutional adoption and strong network fundamentals as critical factors driving this bullish prediction.
Bernstein’s 160-page “Black Book” report emphasizes how institutional investors are reshaping the Bitcoin network by embracing it. Currently, ten global asset managers control nearly $60 billion in regulated Exchange-Traded Funds (ETFs), a significant increase from the $12 billion recorded in September 2022. Bernstein expects Wall Street to surpass Satoshi as the top Bitcoin holder by the end of 2024.
The ETF landscape this year has shown strong institutional enthusiasm, with Bitcoin-related products dominating the top ten most successful ETF launches in 2024. Although there has been a temporary pullback in recent data, with $79.1 million in outflows on October 22, total assets under management have exceeded $65 billion.
BlackRock, a leading asset manager, has played a significant role in driving 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 Bitcoin now rivals Gold as a distinct asset class and argues that the US Presidential elections have no impact on Bitcoin’s price.
JPMorgan has observed investors turning to gold and Bitcoin as a “debasement trade” in anticipation of potential “catastrophic scenarios” due to escalating geopolitical tensions. Hedge fund veteran Paul Tudor Jones has also expressed support for this viewpoint and has long positions in Bitcoin and other commodities.
Bitcoin’s current price movement indicates both strength and caution, with BTC trading at $66,937, up 0.73% in the past 24 hours. The daily chart shows a bearish engulfing pattern, historically predicting short-term reversals with a 60-70% success rate. 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 key resistance levels at $67,500 and $68,000. However, the market’s fundamental strength is evident through the rising hashrate, record-high active addresses, increased network fees, and strong bullish sentiment among options traders.
Overall, the combination of institutional adoption and strengthening network fundamentals is expected to drive Bitcoin towards a historic bullish rally in the near future.