Bernstein has reaffirmed its bullish Bitcoin price projections, now forecasting a long-term target of $1 million by 2033 due to surging demand and limited supply. In the near term, Bernstein analysts have adjusted their predictions, expecting Bitcoin to reach $200,000 by the end of 2025, up from a previous estimate of $150,000, and to rise to $500,000 by 2029.

The firm attributes these optimistic forecasts to increasing Bitcoin demand through avenues like newly launched ETFs and corporate treasury investments. Despite recent price fluctuations, Bernstein's outlook underscores Bitcoin's potential in the broader economic landscape, supported by easing US inflation and evolving political attitudes towards cryptocurrencies.

As part of its bullish stance, Bernstein initiated coverage of MicroStrategy with an outperform rating and a price target of $2,890. MicroStrategy, known for its substantial Bitcoin holdings totaling around 214,400 bitcoins valued at about $14.5 billion, has positioned itself strategically in the crypto market under the leadership of CEO Michael Saylor. Saylor's proactive approach, leveraging convertible debt offerings to acquire more Bitcoin, underscores MicroStrategy's aggressive strategy compared to passive ETFs.

Bernstein analysts Gautam Chhugani and Mahika Sapra highlighted Saylor's leadership in making MicroStrategy a key player in Bitcoin investment, noting the company's advantage in Bitcoin per equity share relative to passive strategies. They emphasized MicroStrategy's financial strategy of using convertible debt to capitalize on Bitcoin's potential while managing liquidation risks, as evidenced by the recent $700 million debt offering aimed at further increasing its Bitcoin reserves.