Bitcoin Price Gigantic Explosion To $200,000 Now ‘Looks Not As Delusional’ For These Reasons

2024-11-20 23:00

Despite Bitcoin’s recent spectacular upsurge, one firm confidently forecasts that the price of the leading cryptocurrency could more than double the current rate of $93K in the next year or so.

Yes, you read that right. According to analysts at Bernstein, BTC’s target of $200,000 no longer looks delusional following the asset’s recent rally to nearly $100K.

Bernstein Reiterates $200K BTC Price Target

Bernstein has highlighted key catalysts that could drive the price of Bitcoin to its cycle target of $200,000 next year. Analysts at the brokerage firm first set this price target in June when the alpha crypto was valued at around $66,000.

“Bitcoin to $100K seems around the corner, and our $200K Bitcoin target [by the end of] 2025 nows looks not as delusional,” the analysts wrote in a Nov. 18 note to clients.

Three Big Near-Term Catalysts Could Drive Bitcoin’s Gains

One catalyst that may propel Bitcoin price to $200,000 is significant advancement toward a national Bitcoin strategic reserve, as President-elect Donald Trump promised pre-election. Bernstein analysts believe serious political momentum toward its establishment has already started but it could require a more extensive process if it entails the acquisition of Bitcoin every year.

Notably, Senator Cynthia Lummis has already presented a draft Bitcoin Act bill that would increase the United States’s holdings until they reach one million tokens, purchased over a period of five years.

Bernstein analysts cited Trump’s crypto promises as another possible catalyst for Bitcoin’s parabolic growth. On the campaign trail, Trump promised to make America a BTC mining powerhouse, put an end to “Operation Choke Point 2.0”, and stop the regulation-by-enforcement approach adopted by Biden’s Securities and Exchange Commission.

According to Bernstein, fulfilling these promises could significantly boost investors’ confidence in crypto, sparking a sustained rally in the prices of BTC and altcoins such as Ether (ETH) and Solana (SOL).

Spot Bitcoin exchange-traded funds and demand from MicroStrategy are also tailwinds, with total ETF assets under management now standing at a jaw-dropping $92 billion.

Meanwhile, MicroStrategy’s Bitcoin buying spree and the software intelligence firm’s plans to raise approximately $42 billion for further acquisitions in the coming three years will be another source of massive demand. Moreover, miners’ continuous hoarding of BTC as the bullish cycle advances will reduce sell pressure and help drive BTC to six digits.

Bernstein advised investors to hold their BTC as a new crypto regulatory era has yet to be priced in.

“With most institutional investors re-examining their anti-crypto stance, we have a long journey of fresh structural allocations to his market. If you are long, we expect you will be on the right side of Bitcoin history,” the analysts summarized.

With Bitcoin currently changing hands for $93,400, the dominant crypto must jump around 110% to reach Bernstein’s $200K target.

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