Bernstein Raises Long-Term Bitcoin Price Projection to $1 Million by 2033, Initiates MicroStrategy Coverage

Bernstein doubled down on his optimism Bitcoin price projections, raising long-term forecasts to $1 million by 2033, driven by unprecedented demand and limited supply.

Bernstein analysts have also revised their forecasts for the current cycle and now expect the flagship cryptocurrency to reach $200,000 by the end of 2025, up from their previous estimate of $150,000. The firm also predicts that Bitcoin will reach $500,000 by 2029.

Bernstein attributed the growth expectations to growing demand for Bitcoin through multiple avenues, most notably newly launched ETFs and the trend of companies adding Bitcoin to their coffers. The company said the increase in demand combined with the contraction in supply indicates significant growth potential.

Despite Bitcoin’s recent difficulty maintaining its position above $67,000, with prices dropping to around $66,850, Bernstein’s optimistic forecast highlights the long-term potential of the cryptocurrency market.

Analysts believe the broader economic backdrop, including easing U.S. inflation and changing political attitudes toward cryptocurrencies, supports a positive outlook for Bitcoin and Bitcoin. MicroStrategy alike.

MicroStrategy coverage

As part of his bullish outlook, Bernstein initiated coverage of MicroStrategy, giving it an outperform rating with a price target of $2,890. The Virginia-based company, known for its significant holdings in Bitcoin, closed at around $1,484 on June 14.

MicroStrategy, which holds about 214,400 bitcoins worth about $14.5 billion, has transformed from a small software company into a major player in the cryptocurrency market over the past four years. The company adopted Bitcoin as a reserve asset in 2020 and its founder and president, Michael Saylorhas been a major proponent of digital currency.

Bernstein analysts Gautam Chhugani and Mahika Sapra highlighted Saylor’s strategic approach in positioning MicroStrategy as a leading Bitcoin company, writing:

“Michael Saylor has become synonymous with the Bitcoin brand, and MicroStrategy has positioned itself as an actively leveraged Bitcoin strategy versus passive spot ETFs.”

According to the company, this active strategy resulted in higher Bitcoin per equity share compared to passive approaches.

MicroStrategy Stacking Bitcoin

MicroStrategy’s long-term financial strategy includes convertible debt, which allows the company to capitalize on Bitcoin’s upside potential while minimizing liquidation risks.

The company has relaunched billions of dollars through multiple debt offerings to increase its BTC holdings in recent months.

The company recently proposed a $500 million selling convertible note debt on June 13 to further boost its Bitcoin reserves. It later increased the amount to $700 million on June 14.

Bernstein believes MicroStrategy’s proactive stance and substantial Bitcoin holdings position it to significantly benefit from the expected growth in the value of cryptocurrencies over the next decade.

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Posted in: Bitcoin, Cryptocurrency

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