The research and brokerage firm Bernstein has forecasted that the world's largest cryptocurrency could reach $200,000 by 2025. Political support and rising ETF demand are crucial elements of this prediction.
The Growing Political Support for Bitcoin
With Donald Trump's potential return to presidency, Bitcoin-friendly policies are gaining traction in the U.S. It is anticipated that the next appointee for SEC Chairman will be favorable towards cryptocurrencies. Additionally, the competition for the Treasury Secretary position includes Scott Bessent and Bitcoin supporter Howard Lutnick, who is backed by prominent figures like Elon Musk and Robert F. Kennedy Jr. Senator Cynthia Lummis has also introduced a bill suggesting the U.S. establish a national Bitcoin reserve to acquire 5% of the total supply.
Increase in ETF Demand
Demand for spot Bitcoin ETFs in the U.S. has reached $92 billion in assets under management, with weekly net inflows of $1.7 billion. Meanwhile, MicroStrategy plans to purchase $42 billion worth of Bitcoin over the next three years.
Long-Term Investment Outlook for Bitcoin
Bernstein stated that Bitcoin is entering a new regulatory era. 'Bitcoin is writing a history that will favor long-term investors. We recommend holding the largest cryptocurrency for another 12-18 months,' said Gautam Chhugani, a leading analyst.
Bernstein's forecast suggests Bitcoin could significantly increase in value by 2025, driven by political support and growing interest in ETFs, potentially creating favorable conditions for long-term investors.
