Bitcoin Projected to Hit $500,000 by 2029, Says Bernstein
Bitcoin is predicted to reach $500,000 by 2029, according to a bullish outlook from Bernstein. The price surge is attributed to a sustained boom in demand for Bitcoin ETFs, combined with a constrained supply.
In a recent note, Bernstein analysts Gautam Chhugani and Mahika Sapra forecast an astonishing 659% increase in Bitcoin's value from its current levels to half-a-million dollars by the end of the decade. This massive price appreciation is due to an explosion in demand for Bitcoin ETFs, which have attracted tens of billions of dollars in assets since their launch. The soaring demand, coupled with an ever-dwindling supply of Bitcoin, sets up a ripe supply-and-demand dynamic that points to continued price gains for the cryptocurrency.
"This unprecedented Bitcoin demand ($190Bn AUM in 2025E vs. $60Bn today) via ETFs led by the world's top asset managers, and the constrained Bitcoin supply create this dynamic," Bernstein stated. Chhugani and Sapra expect Bitcoin to hit $200,000 by 2025, $500,000 by 2029, and a staggering $1 million by 2033. They had previously forecasted a cycle high of $150,000 in 2025 but elevated their projections due to robust ETF flows.
Bernstein's outlook was part of a note initiating coverage of MicroStrategy, which it described as "building the world's largest Bitcoin company." The firm rated MicroStrategy "Outperform" with a $2,890 price target, representing a potential upside of 94% from its current price. MicroStrategy has accumulated 1.1% of the total Bitcoin supply, worth approximately $14.5 billion. The company has a total market valuation of $26 billion, and Bernstein argues that MicroStrategy merits this premium valuation because it offers an active-leveraged strategy compared to passive Bitcoin ETFs.
"Over the last 4 years, MSTR's active strategy has delivered a higher Bitcoin per equity share. BTC/share has grown 67%, from 6 Bitcoin per diluted share in Q4'2020 to nearly 10 today," Bernstein noted. Bitcoin was trading just above $65,000 on Friday, about 12% below its record high of nearly $74,000. This analysis underscores the strong momentum and investor confidence in the long-term potential of Bitcoin.
