1 Top Cryptocurrency Will Soar 150% By 2025, According to Bernstein. Is It a Buy?

In October, investment firm Bernstein predicted that Bitcoin (CRYPTO: BTC) would skyrocket to a price of $150,000 by mid-2025. At the time, Bitcoin was trading at around $35,000, new spot Bitcoin ETFs had not yet been introduced, and the highly anticipated halving had not yet occurred.

Six months later, we can safely say that everything went as planned. In fact, Bernstein recently doubled his $150,000 price prediction for Bitcoin. According to them, the situation of investing in Bitcoin has become more attractive than ever. So should you buy Bitcoin despite the recent drop in price?

follow the money

According to Bernstein, the primary factor currently in favor of Bitcoin is the new spot Bitcoin ETFs. Since their launch in January, they have accumulated more than $30 billion in assets under management. They were a huge success by almost every measure.

The best ETF by far was the iShares Bitcoin Trust (NASDAQ: IBIT), which alone generated a staggering $17 billion. It currently holds more than 200,000 Bitcoins, or more than 1% of all Bitcoin currently in circulation. Through the end of April, this ETF had a staggering 71 days of positive inflow. This is one of the best performances of all time for a new ETF, and until recently it looked like the money would never stop flowing.

Image source: Getty Images.

While spot Bitcoin ETFs have been approved around the world, from Canada to Hong Kong, they are nowhere near matching the new US Bitcoin ETFs in terms of size. In October, Bernstein predicted that these U.S.-based ETFs would eventually account for 10% of all Bitcoin in circulation, or about 2 million Bitcoins.

This makes me think we still have a long way to go in the Bitcoin ETF cycle. Most importantly, we are still at the point where investment advisors are recommending a 1% portfolio allocation to Bitcoin. What happens when they start pushing that number even higher, to 5%? The influx of new Bitcoin money can be expected to become a tsunami, as some expected in October.

What will happen to the halving?

The really good news is that even if there is a slowdown in the flow of new investors into Bitcoin ETFs, we have a second catalyst to save us: the halving. Let’s face it, the halving that took place on April 19 has not been a very positive development so far. On April 19, the price of Bitcoin was $64,000. By May, the price actually dropped below $60,000.

But think about the big picture. There have been three Bitcoin halving cycles before, each lasting approximately 12 to 18 months. And in every previous Bitcoin halving cycle (in 2012, 2016, 2020), the Bitcoin price reached an all-time high after engaging in an absolutely epic bull market rally.

The story continues

So there’s still plenty of time for the halving to work its magic. Apart from a cadre of brave Bitcoin bulls on social media, no one seriously expected Bitcoin to skyrocket in value overnight. Bernstein expects Bitcoin to reach $90,000 by the end of this year before a massive rally in 2025.

Should you buy Bitcoin?

Considering the above, Bitcoin looks like a strong buy right now. First of all, you have the impact of Bitcoin ETFs. More money flowing into them in the foreseeable future will help increase the price of Bitcoin. And there is the halving as a secondary factor. Taken all together, it’s easy to understand why price predictions for Bitcoin are getting higher and higher with each passing month.

Of course, many things can still go wrong. Geopolitical tensions can arise in many hotspots around the world. Or the U.S. economy could continue to stumble. But I’ll try my luck. I agree with Bernstein, who currently thinks Bitcoin could rise to $150,000 by mid-2025. On the contrary, more uncertainty in the world will make Bitcoin an even better buy than it already is.

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Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in Bitcoin and recommends it. The Motley Fool has a disclosure policy.

Top Cryptocurrency Will Increase by 150% by 2025, According to Bernstein. Is this a purchase? originally published by The Motley Fool