Bernstein has reinforced its positive Bitcoin price projections, raising its long-term forecast to $1 million by 2033 due to unprecedented demand and limited supply.

The analysts also revised their predictions for the current cycle, now expecting Bitcoin to reach $200,000 by the end of 2025, up from an earlier estimate of $150,000, and $500,000 by 2029.

Bernstein attributes these growth expectations to increasing Bitcoin demand through new ETFs and corporate treasury additions. The rising demand, coupled with shrinking supply, suggests significant growth potential.

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

The analysts cite a supportive broader economic environment, including easing US inflation and changing political attitudes towards cryptocurrencies, as factors bolstering a positive outlook for both Bitcoin and MicroStrategy.

MicroStrategy coverage

In line with its bullish perspective, Bernstein began covering MicroStrategy with an outperform rating and a price target of $2,890. The company, known for its substantial Bitcoin holdings, closed at around $1,484 on June 14.

MicroStrategy, holding about 214,400 bitcoins worth approximately $14.5 billion, has evolved from a small software firm to a major player in the crypto market over the past four years. The company adopted Bitcoin as a reserve asset in 2020, with founder and chairman Michael Saylor becoming a prominent advocate for the digital currency.

Bernstein analysts Gautam Chhugani and Mahika Sapra praised Saylor’s strategic positioning of MicroStrategy as a leading Bitcoin enterprise, stating:

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

Bernstein notes that this active strategy has resulted in a higher Bitcoin per equity share compared to passive approaches.

MicroStrategy stacking Bitcoin

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

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

Most recently, on June 13, the firm proposed a $500 million debt sale of convertible notes to further boost its Bitcoin reserves, later raising the amount to $700 million on June 14.

Bernstein believes that MicroStrategy’s proactive stance and substantial Bitcoin holdings position it well to benefit from the anticipated growth in crypto value over the coming decade.