Bernstein, a research and brokerage firm, has significantly increased its predicted price target for bitcoin, suggesting that the cryptocurrency could reach a staggering $200,000 by the end of 2025. This optimistic forecast is driven by the growing demand for bitcoin, particularly from spot exchange-traded funds (ETFs), and the limited supply of the cryptocurrency.

The analysts at Bernstein point to the historic four-year trajectory of bitcoin's price performance, which is influenced by the halving event that occurs every four years. They believe that the approved and regulated spot bitcoin ETFs will play a crucial role in driving the price of bitcoin upwards, with major asset managers such as BlackRock, Franklin Templeton, and Fidelity continuing to see massive inflows over the next few years.

Bernstein's analysts also highlight that the launch of spot bitcoin ETFs has opened up the cryptocurrency market to traditional institutional capital, which will further drive demand and prices. They predict that spot bitcoin ETFs will hold around 7% of the total circulating bitcoin supply by the end of 2025, equivalent to around $190 billion in assets.

The brokerage firm's prediction is not limited to 2025, as they also forecast that bitcoin will reach $500,000 by 2029 and a staggering $1 million by 2033. This bullish outlook is based on the expectation that the cryptocurrency market will continue to mature and gain more mainstream acceptance, driving up prices.

Bernstein's revised price target for bitcoin is a significant vote of confidence in the cryptocurrency's potential for growth and adoption. While the prediction may seem overly optimistic, it reflects the growing interest and investment in bitcoin and the broader cryptocurrency market.