Corporate investments in Bitcoin could reach a colossal $330 billion by 2029, suggests a report by Bernstein.
Revved-Up Bitcoin Forecast as Firms Pile In
Bitcoin (BTC) enthusiasts, prepare for a storm of corporate cash! Global equity research firm Bernstein predicts a whopping $330 billion could flow into BTC from corporate treasuries by 2029.
Curious what's driving this tidal wave of dough? Small and slow-growth companies aiming to mimic MicroStrategy's Bitcoin treasure trove are the main culprits. That's according to Bernstein's note to investors, which added that around $205 billion of this substantial sum could be earmarked for BTC purchases.
But wait, there's more! MicroStrategy itself is expected to attract roughly $124 billion to BTC, all thanks to its recent $84 billion capital plan!
Given these projections, one question looms large: What will be the effect on BTC's price?
Bitcoin's Price: Battered, But Not Beaten
First things first, Bernstein expects BTC to soar to a cycle peak of around $200K by the end of 2025. After that, it could hit an eye-popping $500K by 2029, and eventually reach $1 million by 2033. However, ahoy there, mateys! The smartypants at Bernstein also warn of a one-year bear market phase lurking in the horizon.
Ever since U.S. spot ETFs hit the scene in early 2024, institutional inflows have served as a powerful catalyst for BTC price surges. So far, these products have mustered cumulative inflows of $40.7 billion. Did you know the rally from $35K to $74K in 2024 was powered by these humungous inflows?
Take a glance at that Coinglass chart. It confirms the trend: most ETF inflows (green bars) resulted in BTC price skyrocketing, while outflows (red) typically sent it plummeting.
However, Bernstein's forecast is relatively conservative compared to Ark Invest's bolder expectations. Ark Invest anticipates BTC could balloon to a mind-blowing $2.4 million by 2030 due to widespread adoption and scarcity.
Short-term BTC recovery remains uncertain ahead of the Federal Reserve's rate decision on May 7th. Despite relinquishing some recent gains, analyst Mathew Hyland insists the asset still maintains a bullish market structure, so long as it stays above $90K.
"BTC structure is bullish. Future favors higher prices," declares Hyland.
Poll Time! What will happen to Strategy's Bitcoin hoard, which is now worth a staggering $38.08 billion after its latest purchase? And could Ethereum be on the brink of a $2,000 explosion, thanks to its mysterious code name "Pectra"? Your thoughts, please!
- The global equity research firm Bernstein predicts that a significant amount of crypto, particularly Bitcoin (BTC), could receive investments from corporate treasuries, amounting to a potentially massive $330 billion by 2029.
- MicroStrategy's Bitcoin treasure trove and its recent $84 billion capital plan are expected to attract around $124 billion to Bitcoin (BTC), according to the firm's projections.
- Bitcoin (BTC) price is anticipated to soar to a cycle peak of approximately $200K by the end of 2025 and could potentially reach $500K by 2029, while a one-year bear market phase could be lurking in the horizon, as per Bernstein's predictions.
- The impact of these colossal crypto investments in finance, particularly in Bitcoin (BTC) and Ethereum (ETH), on technology and global markets could be substantial, with many industry experts keeping a close eye on the developments in this area.
